For which buyer would a lender most likely approve a $200,000 mortgage?
a person with a credit score of 800 with a large amount of debt who has recently switched to a lower-paying job
a person with a credit score of 760 with a small amount of debt who has had steady employment for many years
a person with a credit score of 650 with a large amount of available credit who has a low-paying, but steady job
a person with a credit score of 600 with a small amount of available credit who has recently switched to a high-paying job
The correct answer is: a person with a credit score of 760 with a small amount of debt who has had steady employment for many years.
Explanation: Lenders generally prefer borrowers with high credit scores, low debt-to-income ratios, and stable employment history. A credit score of 760 is considered excellent, and a small amount of debt combined with steady employment indicates that this buyer is likely to be a responsible borrower and capable of repaying the mortgage.