Question

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

Explanation:

To determine which buyer a lender would most likely approve for a mortgage, we analyze each option based on credit score, debt, and employment stability:

• Option 1: High credit score (800) but large debt and a lower - paying job (recent switch) raises concerns about ability to repay.
• Option 2: Credit score of 760 (good), small debt, and steady employment for many years. Lenders prefer steady income and low debt, along with a good credit score.
• Option 3: Credit score of 650 (fair) and a low - paying job, even with steady employment and large available credit, the low income and fair credit are less favorable.
• Option 4: Credit score of 600 (fair) and a recently switched high - paying job. The recent job switch and fair credit make this less reliable than Option 2.

Answer:

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