You are planning on starting your own business in 18 months and you intend to purchase a new home.You have looked carefully at your budget and have determined that you can afford a PITI of $900 per month.Your banker has told you that you can easily qualify for a PITI of $1,150 per month.Which of the following is the most reasonable explanation for this discrepancy?
A)Your banker knows you really would be happier in a more expensive house.
B)Your banker is not aware of your other long-term financial goals.
C)Your banker's number is more accurate than your number.
D)None of the above is a reasonable explanation.

Question

Quizplus · Accepted Answer

The most reasonable explanation is that the banker is not aware of the individual's other long-term financial goals, such as saving for a business. The banker is only looking at the individual's ability to make the mortgage payment and may not be taking into account other financial commitments.

You Are Planning on Starting Your Own Business in 18