How does a borrower's credit score influence mortgage approval?

The influence of a borrower’s credit score on mortgage approval is significant, primarily because lenders use credit scores as a key metric to assess the risk associated with a loan. A higher credit score indicates to lenders that the borrower has a strong history of managing debt responsibly, making timely payments, and maintaining a stable financial situation. This positive track record typically results in an increased likelihood of approval for a loan.

Additionally, borrowers with higher credit scores are often rewarded with better interest rates and terms. This is because lenders view them as lower-risk borrowers, which leads to more favorable lending conditions. In contrast, a lower credit score signals potential financial instability, which can result in higher interest rates or even outright denials for loans.

Overall, a high credit score enhances a potential borrower's chances of securing a mortgage as well as obtaining better terms, making option B the accurate choice.