Course Project

Fall 2019

This individual (independent) project is due at the beginning of class November 20, 2019.Late projects will not be accepted and will be assigned zero (0) points. The project will be graded on student creativity, incentive and ability to logically apply the concepts presented in the course readings and lectures. It will also be graded for organization and form. Poorly organized or incomplete projects will be penalized. Electronic copies will not be accepted. The project must be typed and well organized.

You need to do research for this project. All external data references/sources are to be appropriately referenced and documented in footnotes or endnotes. Provide a hard copy of all relevant supporting data used in your analysis. Your submission should consist of stapled white paper only (no covers).

CASE DETAILS

You are the realtor for a 30-year old married couple with two children, ages 6 and 5, seeking to purchase their first home. Both spouses are college educated professionals with joint income of $140,000 per year (only income sources). Neither spouse is a veteran. One spouse works in Boulder; the other spouse works in the Denver Tech Center. A change of employment is not under consideration. Their FICO scores are 720 and 760. One of their parents is gifting them $30,000 that will be used as part of a down payment.

Testing indicates both children have the potential for Gifted and Talented education status. The family currently rents a two-bedroom apartment in the Sunnyside area of Denver. Their needs, listed in priority, are: first, an area with highly rated public schools; second, at least three bedrooms, preferably more; third, a yard of their own; fourth, a location that minimizes/balances work drive time for both spouses; fifth, an area with lively shopping and restaurants, and sixth, a two-car garage.

CLIENT FINANCIAL DETAILS

ASSETS

Cash (bank account) 401-K1

401-K2
Personal assets
Auto: 2013 Nissan Rogue Auto: 2016 Honda CR-V

Total

LIABILITIES TOTAL MONTHLY

a Ten year payoff; starting balance $70,000; rate 8%b Interest rate 21%
c Starting balance $25000; rate 6%

$13,119.28 $15,000.00

$22,000.00 $15,000.00 $7,000.00 $19,000.00$91,119.28

Student loansaCredit cardsbAuto loan: CR-Vc

Total

$55,000.00 $849.29

$22,500.00 $675.00

$13,619.28 $414.32

$91,119.28 $1,938.61

Find a currently listed single family home in the Denver Metro area that best meets the needs of your clients. Your property recommendation should be consistent with the stated needs of your clients and the financing of the property must meet all conforming standards. Your clients may have to make financial changes to qualify for a mortgage but all recommended changes must be fully documented, viable, and in the best interest of the clients. All prices, rates, and other data used in your analysis should be derived from current market metrics.

The first 3 pages of your submission should follow the format provided below. The first page of your submission should be a simple cover followed by a one-page (maximum) summary that completely but concisely summarizes the details of your recommended home purchase. The second page documents the mortgage qualification standards required by Federal agencies. Financial analysis is required for meeting the conforming standards. Other supporting documentation (house listing details, rate quotes, school ratings, etc) should be attached beginning on page 3. Superfluous information should not be included.