Qualifying for a loan You are a potential homebuyer who saw I house you really like. In order to determine if you can buy you decide to get a lender to review your financials. The lender asks for your financial information for housing expenses and other expenses. You tell them the following Annual income is $ 60,000 The home you are looking to buy is priced at $323,000, for which you will need to put down 20% of the purchase price as a down payment. The current 30 year loan, has an interest rate of 4% and which equates to a monthly payment of $1,233.64/mg on an 80% loan to value. The property tax estimate is $325/mg Property insurance is $90/mg HOA fee is $40/mg Other monthly expenses are: Credit cards: $100g Car Rmt: $250/mg Student loan: $200/mo The lender tells you his total expense ratio to qualify is 43%, while his housing expense ratio is 37%. Do you qualify for this house? Show work How much home do you qualify for? (work it backwards) SHOW YOUR WORK Qualifying for a loan You are a potential homebuyer who saw I house you really like. In order to determine if you can buy you decide to get a lender to review your financials. The lender asks for your financial information for housing expenses and other expenses. You tell them the following Annual income is $ 60,000 The home you are looking to buy is priced at $323,000, for which you will need to put down 20% of the purchase price as a down payment. The current 30 year loan, has an interest rate of 4% and which equates to a monthly payment of $1,233.64/mg on an 80% loan to value. The property tax estimate is $325/mg Property insurance is $90/mg HOA fee is $40/mg Other monthly expenses are: Credit cards: $100g Car Rmt: $250/mg Student loan: $200/mo The lender tells you his total expense ratio to qualify is 43%, while his housing expense ratio is 37%. Do you qualify for this house? Show work How much home do you qualify for? (work it backwards) SHOW YOUR WORK