9
QuizMultiple Choice

Qualifying for a Home Loan

Question 9 • 26-27 Ignite Financial Literacy Personal Finance - EL3403

Which of the following would have a negative impact on determining eligiblity for a home loan?

Answer
A
earning extra income
B
moving into a different apartment
C
paying off credit card debt
D
withdrawing money from savings

Explanation

Withdrawing money from savings can reduce the assets available for a down payment, closing costs, and financial reserves. Lenders consider these resources when evaluating a mortgage application, so having less savings may make qualifying harder. Earning extra income and paying off credit card debt generally help an application.

AI-written and checked against the verified answer.

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