Essay about Case Study : A Financial Counselor

730 Words 3 Pages
As a financial counselor, it is my job to analysis the financials health of the borrower to determine if one is able to get a mortgage. As I analysis the recent college graduate, who just started a new job making making $65,000 a year with a credit score of 750, and a debt of $700 and have a saving of $7500, is allowed to make a 10% down payment and qualify for a 3.5% annual interest. The front end ratio which is the maximum mortgage payment allowed is $1354.17, and the back end payment is $1,950 which is the maximum monthly debt allowed; therefore, the maximum payment payment is $1,250.
The student is allowed a payment of $1,250 for 30 years’ terms mortgage, and a loan of $278,36.73, and the borrower should look for a house in a price range of $309,298.59 or lower. The student states that he has 7500 in saving which posses a question how she is going to come with 30,929.86 for the down payment in the house and the closing cost of 7732.46. In my opinion, if she cannot come up with the down payment and the closing cost, he should postpone buying a house and safe enough money for 2 years and then buy a house.
My final conclusion, the borrower could apply for VA loan which does not require a down payment and she can buy the same house for the same price range except for the down payment. Also the $7,500 in saving could be used to cover the closing cost.

In the second scenario, a couple with different income and credit score are applying for a loan and neither one has owned a…

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