The applicant has provided the following information. Income $80,000 per year in W2 wages $5,500 per year bonus $2,500 per year rental income Employment Computer programmer for Gryphon Technologies years in current position Credit Score 740 Debt Obligations Student Loan: $485 per month Car Loan: $350 per month Investment Property Mortgage: $1,250 per month Assets $50,000 in money market account $22,000 in 401k $25,000 gift from parents Applicant is under contract to purchase a home for $350,000. The annual taxes are $4,500. The insurance cost is $1,200 per year. Closing costs are estimated at 3% of purchase price. The applicant is seeking a fixed-rate 30 year conventional loan at 80% LTV. In order to approve the loan, the mortgage bank requires a Debt-to-Income Ratio of 43% or less and a Housing Expense Ratio of 28% or less. The bank is quoting an interest rate of 3.25% for applicants with credit scores less than 720, and 3.0% for applicants with credit scores above 720. 1. What is the expected monthly payment to purchase this home? 2. What is this applicant's Debt-to-Income Ratio? 3. What is this applicant's Housing Expense Ratio? 4. Does this applicant qualify for the loan terms he or she is seeking? 5. What could this applicant do to qualify for this loan