A buyer in South Dakota is pre-approved for a mortgage. This means:
Correct Answer
B) The lender has verified income, credit, and assets and is likely to fund the loan
Pre-approval means the lender has verified the buyer's financial information and is conditionally willing to lend a specified amount. It is stronger than pre-qualification but is not a final guarantee — conditions like appraisal and title review must still be met.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Financing Question
Background Knowledge for Financing
Real World Application in Financing
Common Mistakes to Avoid on Financing Questions
Related Topics & Key Terms
Related Topics:
Key Terms:
More Financing Questions
West Virginia redemption period is:
A cooperative in Manhattan is converting to a condominium. How does this conversion affect existing shareholders with share loans?
The loan-to-value ratio (LTV) is calculated as:
Compliance case Cedar Docket frames the issue this way. A Florida buyer borrows $272,000 on a purchase price of $320,000. What is the loan-to-value ratio?
Which of these activities can the owner of a life estate NOT do?
- → Which of the following is a key benefit of a VA loan for eligible veterans?
- → In Delaware financing, which theory is practiced?
- → Audit memo Cedar Case highlights this Florida rule. The purchase price is $360,000, and the lender will lend 90% of the price. How much cash down payment must the buyer bring?
- → Kevin is told that his co-op purchase will require board approval even though he has financing pre-approval. Why is board approval necessary for cooperative purchases in New York?
- → Tennessee has which redemption period after foreclosure?
- → Foreclosure in Vermont is typically:
- → Mississippi uses which security instrument?
- → Which of the following is NOT required for a valid bill of sale?
- → Deficiency judgments in Alabama are:
- → Sarah Martinez is purchasing a co-op apartment in Manhattan for $750,000. Her lender explains the financing structure for cooperative units. What type of loan will Sarah receive for this co-op purchase?
People Also Study
Buyer Representation Agreement
8% of exam
Property Ownership
10% of exam
Land Use Controls and Regulations
8% of exam
Valuation and Market Analysis
10% of exam