Chapter 15 Flashcards
1
Q
Pre-Approval
A
Pre-approval is more involved and includes an application and a credit report.
2
Q
Housing expense qualifying ratio
A
Calculated by dividing the monthly payment the buyer will be obligated to make, including principal, interest, taxes, insurance (PITI) and any other required payment such as mortgage insurance or in some instances, homeowner association fees, by gross monthly income.
3
Q
Debt to income qualifying ratio
A
The debt to income qualifying ratio is calculated by dividing the total monthly house payment, plus any other reoccurring monthly charges, by the gross monthly income.
