Question
.You are a loan originator, and you have a new couple, Pat and Kris as customers who would like to apply for a mortgage loan.
.You are a loan originator, and you have a new couple, Pat and Kris as customers who would like to apply for a mortgage loan. They are new to the homebuying process and have a lot of questions. They have done quite a bit of research online and have become aware of a few of the questions they should ask when applying for a home loan but could still really use some guidance on finding the right solution to their homebuying needs.
They call to set up an appointment, and you inform them of the information that they will need to bring in with them to the application. Pat is 22 and has been self-employed for the past four years, and Kris is 23 and is a recent college graduate and has just begun her first year as a school teacher.
In the initial phone call, they offer information that they are looking at a specific two bedroom home with a sales price of $150,000.00. They have $18,000.00 to put towards a down payment, closing costs and prepaid expenses. It is in an up and coming neighborhood where homes are just now beginning to be renovated and sold. The home they are interested in has recently been renovated and put on the market by a home flipper.
You set a time for Pat and Kris to come in for the loan application. You are in the process of going thru the loan application. This is the time where you need to ask appropriate questions relating to their financial situation, current and future, that will help you as a loan originator create an appropriate loan scenario for Pat and Kris. Thru interviewing Pat and Kris, you determine that they are planning on being in the house a maximum of 7 years. As a teacher, Kris has a contract for $45,000 per year. Pat being self employed shows on tax returns and income of $30,000 per year. They have currently monthly debt of $823 per month that includes a car lease and credit card bills. Kris also has a Student loan for $42,000.00 that is in deferment for the next three months. It will have a payment of $323.00 per month when out of deferment.
Q2: Its very important to listen to the applicants during the phone interview and ask the right questions upfront in considering the additional information required to document their statements. Based on what the borrowers have/have not told you along with the facts presented in the case study, are there any other pertinent questions you will ask to fully meet the requirement of the 3 C's (capacity, collateral, credit) and ATR?
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