Join Jim Stice for an in-depth discussion in this video Mortgage loan application, part of Running a Profitable Business: Understanding Cash Flow.
- Imagine that you are a mortgage loan officer.…Your job is to evaluate each mortgage applicant…to determine the likelihood that she or he…will repay the mortgage loan.…- Now a key piece of evidence in each applicants file…is the financial information that's included…as part of the loan application.…In fact, the need for this financial information…is so fundamental to the application process,…that most mortgage lenders require applicants…to fill out the same standard form.…- The mortgage loan application form asks for information…about monthly income,…current and expected monthly housing expenses,…existing obligations, such as…credit card debt and student loans,…and existing resources, such as bank accounts,…mutual funds, and real estate.…
- A loan officer can use this information…to evaluate whether an applicant will generate enough income…to make the monthly mortgage payments…and continue to make the required payments…on other obligations.…In fact, it is difficult to imagine…how a mortgage loan officer could make an informed decision…
Want to hear more from Jim and Kay? Learn about all three types of accounting—financial, managerial, and income tax—in their Accounting Fundamentals course.
- Differentiating between net income and operating cash flow
- Categorizing cash flow
- Using financial data to deduce cash flow
- Managing operating, investing, and financing cash flows
- Typical cash flow patterns
- Converting net income into operating cash flow
- Improving operating cash flow
Skill Level Intermediate
1. The Importance of Cash Flow Analysis
2. Overview of the Statement of Cash Flows
3. Using Cash Flow Data to Make a Loan Decision
4. Converting Income Statement Data into Operating Cash Flow Data
5. Managing Cash Flow
6. Cash Flow Numbers for Some Real Companies
The danger of free cash flow3m 56s
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