Statement of Problem
Finance and accounting are two different things but most of the people regarded both of them as identical or similar one. Accounting is basically a name of recording the transaction of an organization, while finance is the name of utilizing the funds of a company at a perfect place from where the likelihood of earning would be on a higher scale in total.
Concepts that come under the ambit of both of these broad visions are important to analyze as both of these broad concepts have something very different. Finance based versions and decisions are important for an individual, therefore they have to analyze the stance of the same thing from different angles merely to become economically and strategically competitive. Mortgage is one of the major things which come under the ambit of finance and this particular concept has its recognition and importance. Mortgage is basically a name of having a certain product in relation to place a certain product (Brigham, 2013). This particular activity is extremely important and vital, when it comes to banking organizations or any other financial institutions. There are number of kinds of mortgages, but it is important for the individuals to become qualified for any type of mortgage, they are wishing to have in their future.
The main perspective of this assignment is to analyze that which individual qualifies for the mortgage. Financial information of three different individuals has been given with the assignments which are the basis for the analysis of this particular assignment. Every individual mentioned in the assignment have different financial history as a whole, which would certainly effect their mortgage decisions in total.
Information of the Individual Given
Basically, there are three different cases are attached with this particular analysis and each of the individual has different financial history analysis, including the strategic position of the individual. 1st case associated with Valdez, who is a single person, second one is the Johnson, who is married with a child as well, while Case-3 associated specifically with Adams, who is also a couple with 4 children
The amount of loan, they are applying for also varies from individual to individual. Mentioned below table is jotting down the total amount of loan, an individual is applying for
The net amount of cost each one is mentioned below along with the amount of interest on which they will get the loan.
In this particular scenario, Johnson is trying to have a loan of$ 80,000 with an interest rate of 9%, with monthly payment of $ 643.70, left over a lower amount of money in the cash in the hand of the individual.
Adam is trying to secure a loan 90,000. The comparison of sales and cost of the individuals are mentioned below in details.
The net income of Valdez is the most effective and it is currently lies on the sophisticated position as compared to other important individuals. From this particular analysis, it is found that Valdez has the largest to qualify for the mortgage loan, however all of the selected individuals are for this particular thing but Valdez has a perfect game in all over the world. He thing from which the other two players could be found that they have to decrease down the level of taxation in total along with other potential costs.
Brigham, E. F. (2013). Financial Management: Theory & Practice (with Thomson ONE - Business School Edition 1-Year Printed Access Card). New York: Cengage Learning.