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
Joey would like to apply for a loan but knows that his high debt-to-income (DTI) ratio will probably get in his way. He would like to lower his DTI ratio by lowering the amount of his gross monthly income that goes to living expenses. Joey's current monthly expenses include a rent payment of $1,100, a $178 car payment, and a combined minimum payment of $220 for his credit card debt. His current gross monthly income is $3,600. If Joey moves to a new apartment, what is the maximum monthly rent payment he can make and still maintain a DTI ratio of 36%?a.$702b.$898c.$922d.$960
Which of the following is information a basic loan application would not ask you for?a.nameb.date of birthc.Social Security numberd.auto insurance agency
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.
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
Which of the following is something a lender will not consider when reviewing your loan application?a.collateralb.family sizec.credit scored.debt-to-income (DTI) ratio
Why is credit history such an important factor in being considered for a loan?a.Credit history shows how responsible people are in making payments on time and their general ability to make monthly payments.b.Credit history shows a bank precisely how many valuable things a potential borrower owns.c.Credit history shows that a person is willing to make extreme sacrifices in order to borrow money.d.Credit history is only helpful when applying for a personal loan.
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
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
The debt-to-income (DTI) ratio of a borrower is used to compare _____ to the borrower’s gross monthly income.a.monthly credit expenses (credit cards and loans)b.monthly debt expenses from loans (home, personal, auto, student)c.monthly housing expenses (rent or mortgage, homeowner’s insurance, property tax, utilities)d.monthly living expenses (rent or mortgage, property tax, mortgage insurance, minimum credit card payments, and monthly loan payments)
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