ACTIVITY: Final Paper – Part 3 (Borrower Qualifications)
For the next part of yo
ACTIVITY: Final Paper – Part 3 (Borrower Qualifications)
For the next part of your final paper project, you will be writing the sections regarding your borrowers and their qualifications for the mortgage loan. For this activity, you will write another section for your final paper. We are diving into the mortgage loan scenario by describing the property and assessing the prospective borrower.
As a successful top-producing real estate mortgage lender, write two paragraphs about the borrower qualifications. Answer the questions below in complete sentences, writing 5 sentences for each of the two paragraphs. Use the mock data you downloaded and saved to your computer. Remember to SAVE a copy of this assignment submission to insert into your final paper template.
Scroll down to see the template, a sample activity, and a step-by-step video. Here’s the data sheet again, in case you did not save it from Module 4 Activity:
Instructions
First, read the textbook Chapters 13 & 14 (yes I know we are skipping ahead a few chapters).
Next, using the mock data found in the profile sheet, write 2 paragraphs with facts about the borrower’s loan scenario and financial calculations. Write 2 paragraphs with facts about the borrower’s loan qualifications. Answer the following questions (shown in the template) using complete sentences. Each paragraph must have 5 sentences. In each paragraph, insert the textbook page number in parenthesis.
Insert textbook pages from Chapters 13 and 14 in parenthesis (one citation per paragraph).
TEMPLATE
Borrower QualificationsIn the first paragraph, name the borrowers. Analyze the borrower’s loan qualifications. What is each borrower’s monthly gross income (paycheck before taxes)? What is the borrower’s monthly consumer debt payments? What are the borrowers’ FICO credit scores? Do they have any foreclosures, bankruptcies, or judgments that would disqualify them from a mortgage loan? Cite the textbook (Chapter 13 or 14).
In the second paragraph, discuss the borrowers’ mortgage loan scenario. What type of loan is the borrower applying for (either an FHA or a conventional loan)? State the amount financed. What is the interest rate? Based on the amount financed and the interest rate, how much are the monthly payments? Cite the textbook (Chapter 13 or 14). What documentation will each borrower be required to provide? The textbook gives two basic types of documentation required. #1. Income verification (pages 343-344; 347). #2. Bank statements (pages 349-350). In addition, the borrower will need a credit report explanation if credit is less than perfect (pages 357-358).
Additional Resources
buy_vs_rent_comparison.xlsx Download buy_vs_rent_comparison.xlsx buyers_cost_estimate.xlsx Download buyers_cost_estimate.xlsx buyers_qualification.xlsx Download buyers_qualification.xlsx loan_comparison.xlsx Download loan_comparison.xlsx Example
The model assignment below is to help you get started. DO NOT COPY the wording. Please analyze the assignment for yourself, and write in your own words. DOWNLOAD THE MOCK DATA PROVIDED AND USE THOSE NUMBERS.
The borrower, Mickey Mouse and Minnie Mouse, meet the qualifications for their mortgage loan. Mickey’s monthly gross income (paycheck before taxes) is $4,570 from his job at Tile Manufacturing Plant. Minnie has two sources of income: $____ at _______ and $____ at _______ for a total of $________. Combined that is $____________ for both borrowers. Their combined monthly consumer debt payments are __________. Mickey’s FICO credit score is _____, while Minnie’s FICO score is ____. They do not appear to have any foreclosures, bankruptcies, or judgments that would disqualify them from a mortgage loan (Page 321). (TOTAL OF 5 SENTENCES)
The borrowers have applied for an FHA mortgage loan, which is a government-insured loan, from their local bank. The mortgage interest rate is extremely low at _____%. Based on the amount financed of $___________, the interest rate, and a 30-year amortized mortgage with a fixed payment, the monthly payments would be $_______ for principal and interest. Each borrower be required to provide specific documentation as follows: ______________________(name one or two specific types of income and asset documentation) (Page 123). (TOTAL OF 5 SENTENCES)
VIDEO PRESENTATION
The instructor walks you through this activity step by step.