You've been asked to review the loan request for a customer who wants to purchase a...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
You've been asked to review the loan request for a customer who wants to purchase a home You've noticed that they are requesting a loan of $225,000 and the purchase price of the home is $250,000. In this instance, the loan to value (LTV) is A For the same loan request, the legal instrument the allows your bank to take the home in the event of non-payment is known as the A Next, you begin to analyze the borrower's payment history and notice that they have a car loan, a student loan, and two credit cards. All have been paid on time over the past four years. Using the four Cs of lending, which "C" are you reviewing? A The borrower has only been on her job as a nurse for about 7 months, but just finished her master degree in nursing. Prior to this, she worked at a medexpress and a pharmacy, and she paid cash for her master's degree. Using the four "Cs" of lending, this is an analysis of A Finally, you calculated her debt to income ratio and discovered that her ratios are 22/31. Using the four "Cs" of lending, this is an analysis of You've been asked to review the loan request for a customer who wants to purchase a home You've noticed that they are requesting a loan of $225,000 and the purchase price of the home is $250,000. In this instance, the loan to value (LTV) is A For the same loan request, the legal instrument the allows your bank to take the home in the event of non-payment is known as the A Next, you begin to analyze the borrower's payment history and notice that they have a car loan, a student loan, and two credit cards. All have been paid on time over the past four years. Using the four Cs of lending, which "C" are you reviewing? A The borrower has only been on her job as a nurse for about 7 months, but just finished her master degree in nursing. Prior to this, she worked at a medexpress and a pharmacy, and she paid cash for her master's degree. Using the four "Cs" of lending, this is an analysis of A Finally, you calculated her debt to income ratio and discovered that her ratios are 22/31. Using the four "Cs" of lending, this is an analysis of
Expert Answer:
Answer rating: 100% (QA)
Lets break down the information provided 1 Loan to Value LTV The loan amount requested 225000 The pu... View the full answer
Related Book For
Financial Reporting and Analysis
ISBN: 978-1259722653
7th edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
Posted Date:
Students also viewed these finance questions
-
Consider a two-level memory system (i.e., cache and main memory). Assume the cache access time is 3 clock cycles, and the hit rate is 95%. What should be the main memory access time (penalty) to...
-
This case study on project evaluation is applicable for beginning courses in corporate finance or finance strategy. Two alternative investment options are available to evaluate. Challenges are...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
1. What are the four basic types of unemployment? Which type is most pronounced during difficult economic times such as we have been experiencing during the last few years? Which type is most...
-
Explain why carbon monoxide is toxic.
-
(a) Name the polygon. If the polygon is a quadrilateral, give its specific name. (b) State whether or not the polygon is a regular polygon.
-
(a) What are the phases of the corporate life cycle? (b) What effect does each phase have on the amounts reported in a statement of cash flows?
-
Titania Co. sells $400,000 of 12% bonds on June 1, 2010. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2014. The bonds yields 10%. On October 1, 2011, Titania...
-
Transcribed image text : Red Rentals Company faced the following situations. (Click the icon to view the situations.) Requirement 1. Journalize the adjusting entry needed at December 31, 2023, for...
-
At Peterson State High School, exam results in both Economics and Legal Studies are known to be normally distributed. The mean Economics exam result is 73 marks and the standard deviation is 8 marks....
-
An engineer is going to redesign an ejection seat for an airplane. The seat was designed for pilots weighing between 150 lb and 201 lb. The new population of pilots has normally distributed weights...
-
X Company uses 30 units of Part A per month in the production of its main product. The manufacturing cost per unit of Part A are as follows: Material P 2,000 Handling costs 200 Direct Labor 10,000...
-
Investment Center Income Mobile devices Services $ 563,922 402,390 Sales $ 4,177,200 2,011,950 Average Assets $ 1,770,000 1,315,000 Enter answers in the tabs below. Investment Turnover Profit Margin...
-
Fetzer Company declared a $ 0 . 1 0 per share cash dividend. The company has 3 0 0 , 0 0 0 shares authorized, 2 8 5 , 0 0 0 shares issued, and 1 2 , 0 0 0 shares in treasury stock. The journal entry...
-
Using the information in the table calculate the quality spread differential for Alpha and Beta.
-
How Apple Company Creates and Measures shared Economic and Social Value? Explain with example
-
The general store sells potato chips and has does so for a long time. Over the last four years, it has observed that its weekly demand for potato chips varies quite a bit from week to week, but does...
-
The Taylor's series expansion for cosx about x = 0 is given by: where x is in radians. Write a user-defined function that determines cosx using Taylor's series expansion. For function name and...
-
At December 31, 2017, Kerr Corporation's pension plan administrator provided the following information: Fair value of plan assets........................$3,450,000 Accumulated benefit...
-
Holman Electronics manufactures audio equipment, selling it through various distributors. Holman's days sales outstanding (Accounts receivable / Average daily credit sales) figures increased steadily...
-
Barnard Bike Shop sells a bicycle to a customer for $750. The bicycle comes with free annual tune-ups for three years. The charge for tune-ups sold separately is $60. Barnard uses the residual...
-
Intermediate: Explanation of a product cost calculation In order to identify the costs incurred in carrying out a range of work to customer specification in its factory, a company has a job costing...
-
Advanced: Product cost calculation and costs for decision-making Kaminsky Ltd manufactures belts and braces. The firm is organized into five departments. These are belt-making, braces-making, and...
-
describe the materials recording procedure; LO1
Study smarter with the SolutionInn App