Question

Aspects of a would-be borrower's financial situation that provide a reason for a lender to go beyond normal guidelines for making a loan, such as evidence of an ability to afford the payments, a better-than-average credit history, job security, etc.

A. Amortization
B. Due diligence
C. Creditworthiness
D. Lock-in rate

Answer 1

Aspects of a would-be borrower's financial situation that provide a reason for a lender to go beyond normal guidelines for making a loan include evidence of ability to afford the payments, a better-than-average credit history, and job security.

Step-by-step explanation:

The aspects of a would-be borrower's financial situation that provide a reason for a lender to go beyond normal guidelines for making a loan are:

1. Evidence of an ability to afford the payments: If the borrower can demonstrate a stable income and sufficient cash flow to make loan payments, it reassures the lender that the borrower is capable of repaying the loan.
2. A better-than-average credit history: A good credit history, with a track record of timely repayments and low levels of debt, increases the borrower's creditworthiness in the eyes of the lender.
3. Job security: If the borrower has a steady job with a reliable income source, it gives the lender confidence that the borrower will have the means to repay the loan.