Which of the following is a critical factor in determining loan eligibility for a borrower?

The critical factor in determining loan eligibility for a borrower is the borrower's credit history. Lenders assess a borrower’s credit history to evaluate their financial behavior and risk level. A strong credit history indicates that a borrower is likely to fulfill their repayment obligations, making them a more favorable candidate for a mortgage loan. This history includes the borrower’s record of timely payments, outstanding debts, credit utilization, and any public records such as bankruptcies or liens.

While the type and location of a property along with the interest rate offered can influence the overall transaction, they do not directly assess the borrower's ability or reliability to repay a loan. The borrower's credit history is fundamental as it directly impacts the lender's assessment of risk, which ultimately determines whether the borrower qualifies for a mortgage and under what terms.