4. Can I afford this home? As Aa Can I Afford this Home? Prior to making a mortgage loan, lenders will require a potential borrower to quality and demonstrate an acceptable credit remand and sufficient income to support the loans scheduled payments. This credit evaluationnelles ontwn basic criteria to determine maximum payment amount and really, the maximum total loan and house amount that the border can ord. o n. This practice provides each leder with the flexibility to Generally, the guidelines spadly a mange for sch adapt is requirements to a particular loan applicant The two borowing used by m ading o s e follows: The front and r u n wole housing Expert , which maintains that the applicants al mort perdures for hig u red by a year's worth of PT payments, carreted 25-29 of the bow l s , or beforest . The b and, or maximum sowie morty housing Expense and long term dett. ratio, which maintains that the total of mort det payments including the PTT mortgage payments to an and all other payment carvetten 23-41% of applicant's morty comp Next week, your friends arts and Sanwa to apply to the Fifth State Bank for a mortgage loan. They at considering the purchase of a home that is expected to cost $125,000. To prevent their possible embarassment at the bank, and give your knowledge of personal finance, they've wed you to help answer the following questions by completing the home fordability worksheet that follows: . What is the minimum and maximum a l housing expers allowable by the bank given Marts and Lars combined annual name? What is the minimum and maximum total mantly dit obligation allowable by the bank, diven Marts and Jarr's combined monthly income? . Given their existing debt obligations, what is the maximum additional mortgage obligation that Marts and Jan can reasonably expect the bank to consider next week? To assist in the preparation of the world, Marindan have collected the following information: Their financial reeds report a combineros, before tak, analinoame of $85,000, and current for-mortgage installment loan credit card and car loan, debt of $1,240 per month. Their best estimate of the strate on the new mortgages 7.5h, and they are interested in obtaining a 15-year loan. They have accumulated savings of $12.50 that can be used to satisfy the home's down payment and closing costs The lender requires a minimum 20% down payment Note: When completing the form und sich dollar amount to the nearest whole dollar. Unless labeled derently, all of the values in the worksheet represent dollar amounts. Also, this problem contains additional information that may not be necessary to generate your solutions to the questions Law Value Amount Home Alordability Worksheet Based on the front end ratie High Value 1. Annual income 2. Lender's front and name word tymo 3. Maximum souble housing (T) payment 4. Maximum souble month housing ) payment Based on the Back-end ratis S. Monthly income 6. Existing monthly inc o nt payments 7. Existing monthly payments as percentage of monthly income B. Lender's mont a nt loan wordebility ratio 9. Maximum amount of total month fordable Incont ditt 10. Maximum monthly mortgage payment (RTI given existing debt payments 4. Can I afford this home? As Aa Can I Afford this Home? Prior to making a mortgage loan, lenders will require a potential borrower to quality and demonstrate an acceptable credit remand and sufficient income to support the loans scheduled payments. This credit evaluationnelles ontwn basic criteria to determine maximum payment amount and really, the maximum total loan and house amount that the border can ord. o n. This practice provides each leder with the flexibility to Generally, the guidelines spadly a mange for sch adapt is requirements to a particular loan applicant The two borowing used by m ading o s e follows: The front and r u n wole housing Expert , which maintains that the applicants al mort perdures for hig u red by a year's worth of PT payments, carreted 25-29 of the bow l s , or beforest . The b and, or maximum sowie morty housing Expense and long term dett. ratio, which maintains that the total of mort det payments including the PTT mortgage payments to an and all other payment carvetten 23-41% of applicant's morty comp Next week, your friends arts and Sanwa to apply to the Fifth State Bank for a mortgage loan. They at considering the purchase of a home that is expected to cost $125,000. To prevent their possible embarassment at the bank, and give your knowledge of personal finance, they've wed you to help answer the following questions by completing the home fordability worksheet that follows: . What is the minimum and maximum a l housing expers allowable by the bank given Marts and Lars combined annual name? What is the minimum and maximum total mantly dit obligation allowable by the bank, diven Marts and Jarr's combined monthly income? . Given their existing debt obligations, what is the maximum additional mortgage obligation that Marts and Jan can reasonably expect the bank to consider next week? To assist in the preparation of the world, Marindan have collected the following information: Their financial reeds report a combineros, before tak, analinoame of $85,000, and current for-mortgage installment loan credit card and car loan, debt of $1,240 per month. Their best estimate of the strate on the new mortgages 7.5h, and they are interested in obtaining a 15-year loan. They have accumulated savings of $12.50 that can be used to satisfy the home's down payment and closing costs The lender requires a minimum 20% down payment Note: When completing the form und sich dollar amount to the nearest whole dollar. Unless labeled derently, all of the values in the worksheet represent dollar amounts. Also, this problem contains additional information that may not be necessary to generate your solutions to the questions Law Value Amount Home Alordability Worksheet Based on the front end ratie High Value 1. Annual income 2. Lender's front and name word tymo 3. Maximum souble housing (T) payment 4. Maximum souble month housing ) payment Based on the Back-end ratis S. Monthly income 6. Existing monthly inc o nt payments 7. Existing monthly payments as percentage of monthly income B. Lender's mont a nt loan wordebility ratio 9. Maximum amount of total month fordable Incont ditt 10. Maximum monthly mortgage payment (RTI given existing debt payments