Qualifying a buyer's financial position involves:

• A. Determining the amount of down payment available.
• B. Funds available to cover incidental costs.
• C. Income and existing mortgage payments.
• D. All of the above.

Answer: (D)

Qualifying a buyer means assessing their ability to finance the purchase. That involves three key areas. First, the down payment the buyer can provide affects how large a loan is and the loan-to-value ratio, which lenders consider when approving financing. Second, the buyer needs enough funds at closing to cover incidental costs—things like legal fees, title search, adjustments, taxes, and moving costs—without which the deal cannot close even if the loan is approved. Third, the buyer’s income and any existing mortgage or debt determine their ability to service the new loan; lenders look at how much of their income is available to handle debt service. In practice, these elements together shape whether financing will be approved and under what terms, so all of them are part of qualifying a buyer.