AT THE BANK FOR A HOUSE MORTGAGE
A: Hello Tim. Sit down. So, you’re thinking about buying a new house.
B: Yeah, there’s this fantastic house at ______Avenue North that we’ve just fallen in love with, but we need to see if we can afford it.
A: Let me get some information from you and we’ll find out. What’s your account number?
B: ______
A: Is your phone number still ______?
B: No, it’s been changed to ______. Could you also put in my wife’s cell? The number’s area code ______.
A: Great. Everything’s updated. OK, what was your income last year?
B: Well, according to my T4, I made ______. But since then, I’ve gotten a ______raise. Now, my monthly before tax pay is around ______, so yearly, that must be around ______.
A: And your wife?
B: She makes the big bucks. Her income last year was ______.
A: How about your debt?
B: Let’s see. We owe around ______on our Lexus, and, of course, we are still paying on our house.
A: Right. I see here that you bought your house for ______in ______, and you still owe ______. Those extra payments you’ve made over the years have really added up. Any idea what the current market value is?
B: We’ve already accepted an offer of ______.
A: So, then you’ll have ______after closing the deal. Plus, I see that you have ______in savings. You’re in really great shape financially. Tell me out this new house.
B: Well, it was built in ______, it has ______ft2 on ______levelsowHowHkkk, with a fully developed basement of around ______ft2. The size of the lot is ______ft2, a full ______of the block. All of the appliances stay including a sauna, hot tub, and exercise pool, which the owner says are all valued at around ______.
A: Wow! That sounds like some house. How much are they asking?
B: ______, but our realtor thinks that we can probably get it for ______.
A: OK, let me crunch some numbers. Right. According to your income and debt, you could actually afford ______, not that you should go that high. To avoid extra fees, I suggest that you make at least a ______down payment, which comes to ______. The best interest rate I can give you is ______. At that rate, your monthly payments will be ______. Since you always make extra payments, I expect you could have it paid off by ______. Tim, Given your financial situation, I don’t see any reason why you shouldn’t buy this house.
B: Great! My wife will be thrilled. Let’s start the paperwork.