What do lenders typically assess when deciding to purchase loans in the secondary market?

Lenders typically assess the credit quality of the loans when deciding to purchase them in the secondary market because this evaluation provides insight into the likelihood of borrowers making consistent payments. The credit quality encompasses various factors, including the borrower's credit score, payment history, and debt-to-income ratio. A higher credit quality indicates a lower risk for lenders, which is crucial in determining whether to invest in a particular loan.

In contrast, while other options may offer some insight, they do not provide as comprehensive an assessment of risk or default potential. The location of the property can influence the property's value but does not directly impact borrowers' creditworthiness. The age of the borrower and the number of properties owned are viewed in a broader context but do not specifically reflect credit quality. Assessing credit quality is fundamental in the secondary market, as it helps lenders manage their portfolios and make informed purchasing decisions.