For what reason is a borrower's credit history reviewed during the mortgage application process?

A borrower's credit history is reviewed during the mortgage application process primarily to evaluate their creditworthiness for the loan. This assessment is crucial because it helps lenders to gauge the likelihood that a borrower will repay the loan based on their past behavior with credit.

Creditworthiness is determined by examining various factors in the credit history, including payment history, outstanding debts, length of credit history, types of credit used, and recent inquiries into the borrower's credit. A good credit history indicates a responsible borrowing behavior, making the borrower a more appealing candidate for a mortgage. Lenders utilize this evaluation not only to make informed lending decisions but also to decide on the terms of the loan, such as interest rates and required down payments.

The other options do not directly correlate with the primary purpose of reviewing credit history in the mortgage process. Employment history may be reviewed, but it is through income verification rather than credit history. Evaluating educational background does not typically factor into credit assessments, and calculating net worth is an analysis that might be performed separately, focusing more on assets and liabilities rather than on credit behavior.