Write a 6 pages paper on buying a first home: case study. Fred and Wilma deferred their Dream Home plans and wishes to buy their First Home. They have assumed a property tax of 1% of the purchase price of the home, annual insurance premium of $1,000 and 3% depreciation of the property. Mortgage lenders do not usually look at the home buyer’s incomes, down payment or assets. They usually look at obligations and liabilities like credit card debts, child support payments, auto loans, overall credit rating, insurance premiums and potential property taxes.
.Wilma, Fred’s wife is self-employed. To qualify for a mortgage, she should provide a 24-month history of her salary. Their credit score is 780 which are above the recommended one of 720 and hence they conform to the requirements. The biggest emphasis of credit score is given to the last 12 months. To qualify for a mortgage, it is also important to provide information about any mortgage history, credit cards, and installment loans.
.To arrive at the affordable home for Fred and Wilma, we have allowed a total debt to income ratio of 36 percent. A payment to income ratio of 28% has also been allowed. We have also assumed that Fred and Wilma will put a down payment amount of $2000 and annual property taxes of $200.
.To determine what one wants in education planning, one should know the number of children, how old the children are when they will be attending school and how many years the children will take in preparatory, high school, college, graduate, the cost of education and which schools they will attend. The five children/pebbles will start college at the age of 18 and will spend four years living at Bentley University.