Applying for a Loan Answers

What percent does a lender generally look for when considering the debt-to-income (DTI) ratio of a loan applicant?a.less than or equal to 36%b.less than or equal to 42%c.less than or equal to 50%d.less than or equal to 72%

Which of the following is something you would not expect to see on a basic loan application?a.employer’s name and addressb.doctor’s name and addressc.annual or monthly incomed.current monthly rent or mortgage payment

Jim has an annual salary of $96,000. His monthly expenses include a $2,500 mortgage payment, a $250 lease payment, $500 in minimum credit card payments, and a $425 payment on his speed boat. He also receives $1,200 in interest from his savings and other accounts each month. Calculate Jim’s DTI (debt-to-income) ratio.a.30%b.35%c.40%d.45%

John just moved out of state and, in doing so, had to take a salary cut. At his previous job, his annual salary was $47,000 and his monthly expenses included a $850 rent payment, a $325 car payment, and $375 in minimum credit card payments. His new job has a salary of $43,500. He has the same car payment and minimum credit card payments, but his new apartment costs a mere $625 per month. How did John's move affect his debt-to-income (DTI) ratio?a.John's DTI ratio decreased by 3%.b.John's DTI ratio increased by 3%.c.John's DTI ratio decreased by 9%.d.John's DTI ratio increased by 9%.

Trish is having trouble understanding why she was not approved for her loan. Which of the following probably kept Trish from getting her loan? a. Trish's debt-to-income (DTI) is currently 30%. b. Trish's credit score is 525. c. Trish is a single mom with three kids. d. Trish's gross monthly income is only $2,800. Please select the best answer from the choices provided

Collateral can be beneficial for borrowers when applying for a loan by __________.a.offering lenders additional financial gain if borrowers defaults on their loansb.lessening the total loan amount, making it easier for borrowers to be approvedc.giving lenders protection against financial loss and more reason to approve loansd.demonstrating that borrowers have ownership of high-end goods and can obviously make their loan payments

Cindy would like to apply for a loan but knows that her debt-to-income (DTI) ratio will keep her from being approved. Her monthly expenses include an $800 rent payment, a $230 car payment, a $175 student loan payment and a $160 minimum payment for all three of her credit cards combined. Her current gross monthly income is $2,900.What minimum additional gross monthly income does Cindy need to get her DTI down to 36%?a.$252.78b.$405.56c.$447.22d.$891.67

How would a bigger down payment be beneficial to borrowers?a.A bigger down payment is only beneficial for a person applying for a home loan.b.A bigger down payment is essentially a bribe to the dealership, guaranteeing a few extra bells and whistles for free.c.A bigger down payment means that the borrower has more money, and can afford a bigger loan. d.A bigger down payment is money paid toward principal, interest free, which also decreases the amount paid monthly.

Johnny’s monthly expenses and income are listed below. Calculate Johnny’s debt-to-income (DTI) ratio. Johnny's Monthly Debt and Income Housing: Rent $950.00 Renter's Insurance $25.00 Credit: Student $250.00 Car $239.00 Credit Card #1 $25.00 (minimum) Credit Card #2 $40.00 (minimum) Income: Sales Rep $4,400.00 Tutoring $600.00 a. 28% b. 33% c. 31% d. 35% Please select the best answer from the choices provided

Ralph is thinking of switching jobs. He want to make sure that his new salary maintains a debt-to-income (DTI) ratio of at most 36%. His DTI ratio is currently 29% with a gross monthly income of $3,700. What minimum gross monthly income will Ralph need to maintain a DTI ratio of 36%?a.$1,073.00b.$1,332.00c.$2,980.56d.$3,862.80