Peter wants to buy a house but needs some assistance with the extensive research that has to take place when purchasing a home. First and foremost the basic information needs to be addressed. Peter has seen through an ad that he can obtain a loan through several options; a subprime rate, ARM, extended loan, and many other options.
A subprime mortgage is a type of loan appropriate for individuals with poor credit scores usually below 600, who as a result of their deficient credit ratings wouldn’t be able to qualify for more common conventional mortgages. Subprime borrowers present a higher risk for lenders because of their credit scores and payment history. The subprime mortgage interest change and go far above the prime-lending rate. There …show more content…
There were also are several problems that were encountered because the buyers were not given enough information. It can be treacherous because it is difficult to identify the problem if your missing information. As stated in the article Missing Data: The Hidden Problem, “You can’t predict when missing data are problematic because sometimes your results are affected and sometimes they are not. Also, it is not always obvious when missing data will cause a problem. Each question or variable may only have a small number of missing responses, but in combination, the missing data could be numerous. Only thorough analysis on your missing data can determine whether missing data are problematic” (Missing Data, n.d.). Missing or misleading information can cause serious problems so it is very important that research is properly conducted before an actual offer is …show more content…
The down payment can be considered one of the most important parts of the home buying process. Generally, the lenders ask for about 20 percent of the sale price to qualify for the best loan terms and interest rates. Hernandez, K.C states; “as of 2012, the national median price for a single-family home was $186,100, according to Business Week. If you have $100,000 to put down on a home, you are well positioned to get a significant loan amount” (K.C. Hernandez, para.1). Keep in mind that this was the national median price. Taking a look at California, the prices are significantly
A subprime mortgage is a type of loan appropriate for individuals with poor credit scores usually below 600, who as a result of their deficient credit ratings wouldn’t be able to qualify for more common conventional mortgages. Subprime borrowers present a higher risk for lenders because of their credit scores and payment history. The subprime mortgage interest change and go far above the prime-lending rate. There …show more content…
There were also are several problems that were encountered because the buyers were not given enough information. It can be treacherous because it is difficult to identify the problem if your missing information. As stated in the article Missing Data: The Hidden Problem, “You can’t predict when missing data are problematic because sometimes your results are affected and sometimes they are not. Also, it is not always obvious when missing data will cause a problem. Each question or variable may only have a small number of missing responses, but in combination, the missing data could be numerous. Only thorough analysis on your missing data can determine whether missing data are problematic” (Missing Data, n.d.). Missing or misleading information can cause serious problems so it is very important that research is properly conducted before an actual offer is …show more content…
The down payment can be considered one of the most important parts of the home buying process. Generally, the lenders ask for about 20 percent of the sale price to qualify for the best loan terms and interest rates. Hernandez, K.C states; “as of 2012, the national median price for a single-family home was $186,100, according to Business Week. If you have $100,000 to put down on a home, you are well positioned to get a significant loan amount” (K.C. Hernandez, para.1). Keep in mind that this was the national median price. Taking a look at California, the prices are significantly