Qualifying for a Home Loan Answers

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A couple is required by their lender to have a down payment of 20% of the purchase price of the home they want to buy. If the couple has saved $35,000, what is the most expensive home the couple can afford to buy?a.$63,000b.$140,000c.$175,000d.$210,000

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Using the 28/36 ratio, determine the maximum allowable recurring debt for someone with a monthly income of $4,850.a.$388b.$776c.$970d.$1,358

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Using the standard 28/36 guidelines, what is the maximum mortgage payment allowed for someone with an annual salary of $73,025?a.$2,190.75b.$2,044.70c.$1,703.92d.$1,217.08

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Mr. and Mrs. Lorenzo want to buy a home valued at $213,500. If they have 18% of this amount saved for a down payment, how much have they saved?a.$384.30b.$3,843.00c.$38,043.00d.$38,430.00

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You work for a lender that requires a 20% down payment and uses the standard debt-to-income ratio to determine a person’s eligibility for a home loan. Of the following, choose the person that you would rate the highest on their eligibility for a home loan. Person A Person B Person C Person D home value $175,000 $200,000 $220,000 $250,000 income $51,000 $58,000 $63,000 $67,000 savings $35,000 $40,000 $42,000 $50,000 recurring debt $350 $250 $200 $450 a. Person A b. Person B c. Person C d. Person D Please select the best answer from the choices provided

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Which of the following would least likely be used to determine your eligibility for a home loan?a.credit history reportb.current utility billsc.recurring debt totald.savings account balance

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You work for a lending institution and are tasked with whether or not to approve a home loan, using the standard 28/36 ratio. The loan application is for $230,000. You see that the applicant has an annual salary of $83,000. The applicant also has a car payment of $315, a student loan of $140 and a boat loan of $96. How likely are you to approve the loan? a. Very likely; recurring debt is considerably less than what is allowed. b. Somewhat likely; recurring debt is very close to what is allowed. c. Not likely; recurring debt is higher than what is allowed. d. There is not enough information given to determine the answer. Please select the best answer from the choices provided

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Bessie has an annual salary of $51,360. Each month she has a car payment of $210 and a student loan of $50. If she applies for a home loan, how likely is it Bessie will be approved based on her debt-to-income ratio?a.Very likely; recurring debt is less than what is allowed.b.Somewhat likely; recurring debt is equal to what is allowed.c.Not likely; recurring debt is higher than what is allowed.d.There is not enough information given to determine the answer.

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Using the standard 28/36 guidelines, if the maximum monthly mortgage payment allowed for someone applying for a home loan is $1,085, what is their annual income?a.$36,167b.$46,500c.$65,100d.$162,750

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How much annual income would you need to have if, using the 28/36 ratio, your maximum allowable recurring debt is $380?a.$16,290b.$22,800c.$57,000d.$75,000

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