Which of the following documents would typically be required for pre-approval but NOT for pre-qualification?
Correct Answer
B) Recent pay stubs and W-2 forms
Pre-approval requires verification of income through documentation such as pay stubs, W-2 forms, tax returns, and bank statements. Pre-qualification typically relies on verbal or self-reported information without documentation requirements.
Why This Is the Correct Answer
Pre-approval requires verification of income through documentation such as pay stubs, W-2 forms, tax returns, and bank statements. Pre-qualification typically relies on verbal or self-reported information without documentation requirements.
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Previous Question
An MLO works for a lender that doesn't offer government loans in-house but can broker them through wholesale partners. When presenting loan options to a borrower who qualifies for both conventional and FHA loans, the MLO must:
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A lender discovers that the actual title insurance cost is $50 higher than disclosed on the Loan Estimate due to a rate increase that occurred 2 days after the LE was issued but before the borrower's intent to proceed. The borrower has not yet signed the intent to proceed. What action should the lender take?