Real Estate Finance Problem Set 1.
I don’t understand this Business question and need help to study.
As a first-time home buyer, you and your spouse are searching a home in Orange County, including City of Irvine. You are looking for 3 bed room and 2 bath condo or townhouse, between 1,500 to 1,800 square feet, 2 car garages, built after year 2004, in a nice location, close to restaurants, grocery shopping, and easy access to freeway. You and your spouse both works, and combined salary is $120,000 per year. Your credit score is 660, and your spouse credit score is 740. You have monthly student loan payment of $200 per month with three (3) years to pay off the student loan. Car payment total $250 per month with three years remaining. You really want to replace your 2004 Honda Civic, which has been paid off, with a newer car which will cost approximately $300 per month for 5 years, plus additional down payment of $5,000 after trade-in the 2004 Honda Civic. You have saved up $150,000 in saving account. You plan to use up to $120,000 for down payment of this home. You plan to stay in this home for at least 5 years and possible move to a larger home if your future income could afford the price. Jeffrey Lu of Coldwell Banker has searched and offered you and your spouse a list of home to choose from
(on blackboard – content – “FIN335.Spring2019.Real Estate Finance Problem Set 1_List of Homes to Choose from.pdf”)