Question

which financial problems might cause a person to be considered a bad risk for a loan to purchase a home? check all that apply. applying for loans to pay for college making late payments having more debt than income filing for bankruptcy paying a credit card balance in full each month

Explanation:

• Applying for college loans alone doesn't make one a bad risk for a home loan, as college loans are a common financial obligation.
• Making late payments shows a history of not meeting financial obligations on time, which is a red flag for lenders as it indicates potential difficulty in repaying the home loan.
• Having more debt than income means the person's debt burden is high relative to their earnings, making it risky for lenders to approve a home loan as the person may struggle to make payments.
• Filing for bankruptcy is a significant financial setback that shows a history of inability to manage debts, so lenders will consider this a bad risk for a home loan.
• Paying a credit card balance in full each month is a good financial habit that shows responsible credit management, so it does not make one a bad risk.

Answer:

B. making late payments, C. having more debt than income, D. filing for bankruptcy