Paula has completed a mortgage application and provided evidence of employment,income,assets owned,and existing debt to the potential lending institution.Although Paula has not even begun the process of looking at possible homes to buy,she is eagerly awaiting news from the lender as to whether she has been approved for a mortgage.In what stage of the application process is she?
A)Appraisal
B)Prequalification
C)Assessment
D)Amortization
E)Home inspection

Question

Quizplus · Accepted Answer

Paula is in the prequalification stage, where lenders evaluate her financial information to estimate how much she might be eligible to borrow before she actually applies for a loan or looks at homes. This step helps potential homebuyers understand their borrowing capacity.

Paula Has Completed a Mortgage Application and Provided Evidence of Employment,income,assets