What documentation is essential for a mortgage broker to efficiently process client applications?

The correct choice points out that both a credit report and proof of income are essential for a mortgage broker to efficiently process client applications.

A credit report provides vital information about a borrower’s credit history, including their credit score, outstanding debts, payment history, and overall creditworthiness. This information is crucial for assessing the risk the lender incurs by offering a mortgage. It helps the broker understand the borrower’s financial behavior and likelihood of repaying the loan.

Proof of income, on the other hand, verifies that the borrower has a steady and reliable source of funds to support the mortgage payments. Lenders typically require documentation such as pay stubs, W-2 forms, or tax returns to confirm the borrower’s financial stability.

Together, these documents give a comprehensive view of a borrower’s financial situation, enabling the mortgage broker to make informed decisions and expedite the processing of applications. Relying solely on a verbal agreement would not meet the necessary legal and financial standards required in mortgage transactions, which is why it is not the correct choice.