When evaluating a borrower's income, which aspect should not be considered?

When evaluating a borrower's income, it is crucial to focus on aspects that directly impact their ability to repay a loan. The source of income is indeed a critical factor, as it helps lenders determine the stability and reliability of that income. It is important to assess whether the income comes from a steady job, self-employment, investments, or some other source.

The correct aspect that should not be considered in the income evaluation is the source because it does not directly relate to the borrower’s financial capability in the same way that other factors do. For instance, while the amount of income and its consistency are certainly important, the specific origin of that income—whether it be from employment, alimony, rental properties, or another source—should not be weighted the same way in the context of qualifying for a loan.

Unlike other aspects, such as deductibility and taxation, which influence how much of a borrower's income is available for debt repayment after tax obligations and other deductions are considered, the source does not inherently indicate whether the income is reliable enough for assessing loan qualification.