Qualifying for a Mortgage
In your Learning Activity you received some practice
regarding the housing expense ratio and the debt-to-income
ratio. In this assignment, you will apply these ratios to a
scenario to qualify yourself for a mortgage.
Scenario: You have found a home you wish to purchase.
The PITI (i.e., monthly payments) on the mortgage you have
applied for is $1425.00 per month. You gross monthly
income is $4,750.00 per month and your car payments are
only $150 for the next 4 years since you paid the majority of
the price of the car in cash, and you have no credit card
debt. Additionally, you only have $10,000 to put down on the
property.
Access the formulas for calculating the housing expense rati
o and debt-to-income ratio
Calculate your housing expense ratio.
Then calculate the debt-to-income ratio.
Would you qualify for a conventional loan? Why or why
not? Provide both ratios and your reasoning.
Explain how you would proceed.
Access the Unit 6 Assignment grading rubric.
Respond in a minimum of 250 words in a double-spaced
Word document using 12-point, Times New Roman font.
Submit your response to the Unit 6 Assignment Dropbox.