Credit Adjudication Scenario: Mary and John

Mary and John have come to you as they are interested in purchasing their first home. They have been saving for years for this and have found a home that they would like to put an offer in on. They have come to you for preapproval.

The purchase price of the property is $545,000. They have saved $81,750 in their savings account at your financial insitution for the down payment. They have another $10,000 in savings that they want to keep for closing costs, and furniture.

Age: Mary is 32 and John is 35.

Job and Salary: Mary is an Associate Vice President of HR for a local oil and gas company, she makes $125,000/year.

John is a software developer at a local gaming developer. He makes $82,000/year. They have both been at their companies for over 5 years. Living Situation: They are currently renting for $2500/month a condo downtown, and have been in the same location for four years.

1. Discuss present economic conditions and how this can impact your decision (for example, Mary work in a cyclical or defensive industry: oil and gas company).

2. If approving the credit application, provide conditions of approval that you will be adding:

o Insurance requirements

o Fixed or revolving credit

o Savings program to be established

o Anything else

5. Any Alternative or Complimentary Product Suggestions?