Which of the following factors can negatively impact a lender's confidence in approving a mortgage application?

A low credit score can significantly undermine a lender's confidence in approving a mortgage application because it reflects the borrower's creditworthiness and financial behavior. A credit score is derived from various factors, including payment history, amounts owed, length of credit history, new credit inquiries, and types of credit used. A low score typically indicates that the borrower may have previously had difficulty managing debt or has missed payments, which raises red flags for lenders regarding the likelihood of timely mortgage repayments.

In contrast, high income, stable employment, and low debt levels all contribute positively to a lender's assessment of a mortgage application. High income indicates the borrower has sufficient means to repay the loan, stable employment suggests reliability and the ability to sustain income over time, and low debt levels indicate the borrower is less financially burdened, reducing risk in the lender's perspective. All these factors provide assurance to lenders that the borrower can manage their financial obligations effectively.