What does a lender or broker require to assess a borrower's mortgage eligibility?

• A. Loan Estimate Document
• B. Pre-Approval Form
• C. Mortgage Application
• D. Credit History Report

Answer: (C)

To determine a borrower's mortgage eligibility, the lender or broker typically requires a mortgage application. This application provides a comprehensive overview of the borrower's financial situation, including income, employment history, debts, and assets. It serves as the primary document that helps the lender assess whether the borrower meets the necessary criteria for the mortgage, including the ability to repay the loan.

While other documents, such as a credit history report, loan estimate, or pre-approval form, play significant roles in the overall mortgage process, they do not encapsulate all the necessary information that the mortgage application provides. The credit history report, for instance, gives insight into the borrower's creditworthiness, but it does not include details about their income or employment. The loan estimate outlines terms and costs associated with the mortgage, while the pre-approval form is more of a preliminary step indicating that the borrower has met certain criteria, but it is based on the information provided in the mortgage application. Thus, the complete submission of the mortgage application is essential for a thorough assessment of mortgage eligibility by lenders or brokers.