What document is typically used to assess creditworthiness in mortgage applications?

The document primarily used to assess creditworthiness in mortgage applications is the credit report. A credit report provides a comprehensive overview of an individual's credit history, including details such as payment history, outstanding debts, the types of credit accounts held, and any public records of bankruptcies or foreclosures. Lenders analyze this information to evaluate the risk of lending to a borrower, and it plays a crucial role in determining whether a loan is granted and under what terms.

Income statements, while important for verifying a borrower’s ability to repay a loan, do not directly reflect creditworthiness as comprehensively as a credit report. Employment verification confirms job stability and income but does not provide insights into the borrower's past credit behavior. Asset statements outline the total assets a borrower holds, which can indicate financial health but do not assess credit history or repayment habits. Thus, the credit report is the key document for assessing creditworthiness during the mortgage application process.