Finance

A Wyoming buyer applies for a conventional mortgage. The lender reviews the 'Three Cs' of credit underwriting. These three factors are:

ACredit score, collateral (property value), and capacity (income/debt ratio)✓ Correct
BContract, commission, and closing costs
CCash, co-signer, and credit history
DComparable sales, cap rate, and cash flow

Explanation

Mortgage underwriting evaluates three Cs: (1) Capacity—the borrower's ability to repay (income, employment, debt ratios), (2) Credit—creditworthiness and credit history, and (3) Collateral—the property's value relative to the loan amount (LTV ratio).

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