For which buyer would a lender most likely approve a $200,000 mortgage?

Question

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

Quizzma Team · Answer

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.

Quizzma Team · Answer

The most likely buyer for a $200,000 mortgage would be:

b) a person with a credit score of 760 with a small amount of debt who has had steady employment for many years.

Explanation: Lenders typically look for a combination of a good credit score, manageable debt levels, and stable employment. A credit score of 760 is considered very good, and having a small amount of debt reduces the risk for the lender. Additionally, the fact that this person has had steady employment for many years suggests reliability and the ability to make mortgage payments.

For which buyer would a lender most likely approve a $200,000 mortgage?

2 Answers