You have just been offered a full-time position in Cambridge and want to live close to where you will be working.The picture shows a condo currently listed for sale at $575,000 in Cambridge.It last sold for $435,000 in July 2005.This 1,128 square foot condominium has 2 bedrooms and 2 baths.The annual taxes are estimated to be $3,216.In research on home insurance, you've discovered that an average policy in Cambridge at this price level will cost about $1,080 per year.

Financing information for the potential property purchase is given above.

You have a monthly car finance obligation (instalment) of $300 which you are paying off over the finance period of 4 years and $200 per month on your consolidated student loans.

Your broker has calculated closing costs, separate from the down payment on this property, to be $4,500. Assume that you will need to offer the listed price to stand a good chance of being accepted by the seller.

1. How much money will you need to have available for your property purchase at closing, and secondly, how much for the first month?
2. How much of your first month's payment would go to reducing the principal amount?
3. Assuming that your new position has a starting salary of $9,000, using the ratio of 38% rule, what is the likely maximum mortgage loan that you could qualify for based only on this rule?
4. Your broker has advised you that you are short $30,000 for the required funding at closing. You have spoken to your father and he is willing to fund the shortfall? In what acceptable manner could you structure this funding for the property purchase in order to be confident that the lender will accept the proposed funding of the shortfall?
5. When purchasing one's primary residence, list two more useful pieces of advice for the purchaser.