In the Process of Deciding Whether to Extend a Mortgage

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