Finance
When a Texas mortgage lender 'qualifies' a borrower, they are primarily evaluating:
AThe borrower's educational background
BThe borrower's creditworthiness, income, debt levels, assets, and property value✓ Correct
CThe borrower's real estate experience
DThe borrower's relationship with the real estate agent
Explanation
Mortgage underwriting evaluates the 'Four Cs': Credit (credit score and history), Capacity (income vs. debt — DTI ratio), Capital (assets and reserves), and Collateral (property value — LTV). These factors determine creditworthiness.
Related Texas Finance Questions
- A Texas property has an existing assumable VA loan at 3.5% interest. A new buyer who is not a veteran:
- In Texas, 'construction-to-permanent' (C2P) financing combines which two loans into one process?
- When a Texas lender 'calls' a loan, this means:
- Texas law regulates 'prepayment penalties' on home loans. For home equity loans under Texas Constitution Article XVI, prepayment penalties are:
- A Texas real estate investor uses the debt coverage ratio (DCR) to evaluate a purchase. A DCR of 1.0 means:
- A Texas USDA Guaranteed loan has a maximum income limit. This limit is based on:
- Under TRID, a 'changed circumstance' that allows a lender to issue a revised Loan Estimate includes:
- In Texas, what is the primary purpose of private mortgage insurance (PMI)?
Practice More Texas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Texas Quiz →