As a loan officer in a bank, you received an application for a real estate loan from a borrower tobuy an apartment in Dubai. The apartment is an unfurnished one bedroom flat situated in ParkIsland building (Sanibel) in Dubai Marina. Details about the property (and a comparable one soldin the same building) are presented in the following table:Sale dateSelling price/value (AED)Gross annual rent (AED)Annual Maintenance fees(AED/square feet)Vacancy rate (%)Area (square feet)Price (AED/square feet)Gross annual rent (AED/square feet)Proximity to AParking availableFloor levelExterior (Building)ViewProperty to be valued (A) Comparable Property (B)in October 2022??2010922??1highFloor to Ceiling GlassFull Marina ViewJanuary 20221,550,0002010937?Same building1highFloor to Ceiling GlassFull Marina ViewQuestions:5- Which approach the bank is most likely to adopt? Justify your answer.6- How much loan should the bank advance in the Loan to Value Ratio (LVR) is 75%?Page 1 of 2

Loan to value ratio is to be computed by taking the loan value as the numerator and the value of…

Answered: As a loan officer in a bank, you…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter3: Income Sources

Section: Chapter Questions

Problem 82P: Lorene, Inc., owns an apartment complex. The terms of Lorenes lease agreement require new tenants to...

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Group Case Study: As a loan officer in a bank, you received an application for a real estate loan from a borrower to buy an apartment in Dubai. The apartment is an unfurnished one bedroom flat situated in Park Island building (Sanibel) in Dubai Marina. Details about the property (and a comparable one sold in the same building) are presented in the following table: Property to be valued (A) Comparable Property (B) in March 2022 Sale date Selling price/value (AED) Gross annual rent (AED) January 2022 1,550,000 Annual Maintenance fees 20 20 (AED/square feet) Vacancy rate (%) Area (square feet) Price (AED/square feet) Gross annual rent (AED/square feet) Proximity to A Parking available Floor level Exterior (Building) 10 10 922 937 Same building 1. 1. high Floor to Ceiling Glass Full Marina View high Floor to Ceiling Glass Full Marina View View a. Using the market value approach, find the value of the property (A) (Suppose that the price listed is the selling price). b. Using the income…
Before you are able to purchase a home you need to get pre-qualified and determine the maximum amount you can afford for the mortgage payment. The mortgage company that you visit uses the qualifying ratios 29/41. After speaking with the mortgage broker and answering several questions, the broker compiles this information regarding your income and expenses: You have a monthly income of $5,500. Your significant other that is living with your and will be on the loan earns $4,500 monthly. You have 2 car payments, one is $325 and the other is $280. Your significant other has a motorcycle payment of $450. You have a credit card payment of $25. Your significant other has a credit card payment of $180. The annual property tax in the area that you are considering to purchase the house has an average amount of $2800, while the average home insurance is $800 annually. Determine the anticipated monthly payment of the mortgage based on the given ratios. A) The Front-End (AKA: Housing) Ratio: ? B)…
Sulaiman just graduated from his study last year. Currently, he started working with one company in Alor Setar, Kedah and his job requires him to travel frequently. Sulaiman has two choices whether to purchase or to lease a car. The following information is available for him to make the decision. Purchase cost Down payment Loan payment monthly Estimated value Leasing cost Security deposit Lease payment per month RM4,900 RM520 for 108 RM860 RM598 for 96 months months of vehicle at end End-of-lease of loan RM24,000 RM1,850 charges term/ownership period Opportunity cost interest rate: 5% i) Based on the information above, determine which alternative should be considered by Sulaiman. Prove your answer with calculation.
Jane Jones has applied for a mortgage loan from the Bank of Mississippi. The bank requested from you an appraisal of the property using the sales comparison approach. (4 points) Elements of Comparison Sales Price of Comparable Transaction Adjustments Property rights conveyed Financing terms Conditions of sale Expenditure inmed. after purchase Market Condition (Sale date Months Prior) Adj. for market conditions (Months Prior Sale Subject Comparable 1 Comparable 2 Comparable 3 $176,000 $172,000 $163,000 Fee Simple Same Same Same Conventional Same Same Same Arms Length Same Same Same None None None: None Today 0 4 12 Adjusted price: Current Market conditions indicate an increase in property value of 0.25% per month. Answer in the space provided the following questions to fill in the highlighted areas of the appraisal 1. Put in the value adjustments for the market conditions in order from left to right, as if they were in each comparable sale column for 1, 2, and 3 with the appropriate +…
As one of the loan officers for Grove Gate Bank, calculate the monthly principal and interest, PI (in $), using this table and the monthly PITI (in $) for the mortgage. (Round dollars to the nearest cent.)
Problem: You are a mortgage broker at your local bank. Your cousin submitted an application for a mortgage with a monthly PITI of $1,319. His financial other obligations total $744.50. Your cousin earns a gross income of $5,005. (a) What is your cousin's expense ratio? (b) What is his total obligations ratio? (c) According to the Lending Ratio Guidelines in your textbook (Chapter 14, section II), for type of mortgage would Bool qualify, if any? Explain. (d) If your cousin decided to get a part-time job so he can qualify for conventional mortgage, how much additional monthly income would he need? (Set up an equation and solve it.)
What should an investment analyst look into before recommending an investment to clients? How should a commercial loan officer analyze a loan application that includes 3 years' worth of financial statements?
a
You are a mortgage broker at Interamerican Bank. One of your clients, Bill Cramer, has submitted an application for a mortgage with a monthly PITI of $1,259. His other financial obligations total $654.50 per month. Bill earns a gross income of $4,890 per month. a. What is his housing expense ratio? b. What is his total obligations ratio? c. According to the lending ratio guidelines (given in this secion of your text), for what type of mortgage would Bill qualify, if any? d. If Bill decided to get a part time job so that he could qualify for a conventional mortgage, how much additional monthly income would he need?
Find the annual homeowners insurance premium on a masonry home located in zone 1 if the home is insured for $237,000. The owner chooses a $1,500 deductible and has good credit. E Click the icon to see a hypothetical table of Estimated Annual Homeowners Insurance Premium Rates per $100 of Face Value. The annual homeowners insurance premium is $ (Simplify your answer. Type an integer or a decimal.)
Bank Meethaq provides a financing facility basedon murabahah to the Purchase Orderer principlesto Ahmad for the purpose of house purchase.The financing is amounting to OR 44000 at aconstant rate of return 6% for a period of 3 years.Calculate the first year balance of BBA (bai'bithaman ajil ) financing
Vikarmbhai

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