Paula has completed a mortgage application and provided evidence of employment, income, 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 she has submitted her application and supporting documents to the lender for evaluation to determine how much she can afford to borrow. She has not yet requested an appraisal, assessment, or home inspection, nor has she reached the amortization stage, which occurs after the mortgage loan has been granted and payments begin.

Paula Has Completed a Mortgage Application and Provided Evidence of Employment