Finance
A borrower's credit score is used by lenders primarily to:
ADetermine the appraised value of the property
BAssess the likelihood the borrower will repay the debt as agreed✓ Correct
CCalculate the required down payment amount
DSet the property tax rate
Explanation
Credit scores (FICO) quantify a borrower's credit risk based on payment history, amounts owed, credit history length, credit mix, and new credit. Higher scores typically result in lower interest rates and better loan terms.
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