You are the realtor for a 30-year old married couple with two children, ages 6 and 5, seeking to purchase their first home. Both spouses are college educated professionals with joint income of $140,000 per year (only income sources). One spouse works in Boulder; the other spouse works in the Denver. A change of employment is not under consideration. Their FICO scores are 720 and 760. One of their parents is gifting them $30,000 that will be used as part of a down payment.

How would you calcalculate how much the couple can spend on a house?

CLIENT FINANCIAL DETAILS TOTAL ASSETS Cash (bank account) 401-K 401-K2 Personal assets Auto: 2012 Nissan Rogue $7,000.00 Auto: 2015 Honda CR-V$19,000.00 MONTHLY $55,000.00 $849.29 $22,500.00 $675.0o Auto loan: CR-Vc$13,619.28 $414.32 Total $91,119.28 $1,938.61 LIABILITIES Student loansa Credit cards $13,119.28 $15,000.00 $22,000.00 $15,000.00 Total $91,119.28 a Ten year payoff; starting balance $70,000; rate 8% b Interest rate 21% c Starting balance $25000; rate 6% CLIENT FINANCIAL DETAILS TOTAL ASSETS Cash (bank account) 401-K 401-K2 Personal assets Auto: 2012 Nissan Rogue $7,000.00 Auto: 2015 Honda CR-V$19,000.00 MONTHLY $55,000.00 $849.29 $22,500.00 $675.0o Auto loan: CR-Vc$13,619.28 $414.32 Total $91,119.28 $1,938.61 LIABILITIES Student loansa Credit cards $13,119.28 $15,000.00 $22,000.00 $15,000.00 Total $91,119.28 a Ten year payoff; starting balance $70,000; rate 8% b Interest rate 21% c Starting balance $25000; rate 6%