In the Process of Deciding Whether to Extend a Mortgage

question 12

Multiple Choice

In the process of deciding whether to extend a mortgage loan to a prospective borrower, lenders typically examine three elements, more commonly referred to as the "3 C's." Which of the following metrics does a bank use to evaluate the collateral piece of the loan agreement?

• A) Loan-to-value ratio
• B) Payment-to-income ratio
• C) Credit score
• D) Housing expense ratio

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Definitions:

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The act of refraining from all or some types of sexual activity or substance use, often for personal, religious, or health reasons.

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