A borrower calls and provides verbal information about their income, debts, and down payment. Based on this information, the MLO tells them they could qualify for a $300,000 loan. This process is best described as:
Correct Answer
A) Pre-qualification
Pre-qualification involves providing an estimate of loan amount based on unverified, self-reported information from the borrower. No documentation is typically required, and the estimate is not binding on the lender.
Why This Is the Correct Answer
Pre-qualification involves providing an estimate of loan amount based on unverified, self-reported information from the borrower. No documentation is typically required, and the estimate is not binding on the lender.
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