Which two factors are analyzed first about a borrower?

The correct choice focuses on the critical financial assessments that lenders perform early in the loan application process. A credit check is essential for determining a borrower’s creditworthiness, which informs lenders about how likely a borrower is to repay their loan based on their past credit behavior. The analysis of debt service ratios gives insight into the borrower’s ability to manage their debt obligations. This includes the Gross Debt Service (GDS) ratio and the Total Debt Service (TDS) ratio, which reveal how much of their income is being used for housing costs and total debt payments, respectively.

These two evaluations—credit check and debt service ratios—provide foundational insights into the borrower's financial situation and their risk profile. They allow lenders to assess whether the borrower is a responsible borrower and can manage additional debt, which is crucial for risk management in mortgage lending.

Other options involve important aspects but are secondary in assessing initial loan eligibility. Personal savings and credit score might be reviewed subsequently, as they can influence the overall impression of the borrower but the immediate focus typically remains on credit checks and debt obligations. Employment history and financial assets, while significant, generally support the primary assessments rather than leading them. Lastly, income verification and property appraisal are vital later in the process, particularly in making