Finance
When a lender 'qualifies' a borrower for a mortgage, they evaluate the borrower's:
ACredit history and score only
BIncome, assets, debts, and credit history to determine ability to repay✓ Correct
CEmployment history only
DNet worth relative to the loan amount
Explanation
Mortgage qualification (underwriting) evaluates the 'three Cs': Capacity (income vs. debt), Capital (assets and down payment), and Credit (credit history and score). Lenders analyze these factors to determine the borrower's ability and likelihood of repaying the loan.
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