Matt is considering the purchase of a condo on a mortgage. However, he is not sure of the amount of the mortgage he is eligible for. _____ will help him identify and correct any problems, such as credit report errors, that may arise on his application.
A) Prequalification
B) A contingency clause
C) A Multiple Listing Service (MLS)
D) The seller's financial institution
E) A buyer ' s agent

Question

Matt is considering the purchase of a condo on a mortgage. However, he is not sure of the amount of the mortgage he is eligible for. _____  will help him identify and correct any problems, such as credit report errors, that may arise on his application.
A) Prequalification
B) A contingency clause
C) A Multiple Listing Service (MLS)
D) The seller's financial institution
E) A buyer ' s agent

Quizplus · Accepted Answer

Prequalification is the process of determining how much a potential homebuyer can afford to borrow for a mortgage by evaluating their income, credit score, debt, and other financial factors. Through prequalification, Matt can identify any credit report errors or other issues that may prevent him from qualifying for a mortgage or impact the amount he can borrow. A contingency clause is a contract provision that makes an agreement dependent on certain conditions, such as obtaining financing, so it is not relevant to Matt's initial application process. MLS is a database of real estate listings and not related to mortgage eligibility. The seller's financial institution also doesn't play a role in Matt's application process. Finally, a buyer's agent is not specifically tasked with helping Matt identify and correct issues on his mortgage application.

Matt Is Considering the Purchase of a Condo on a Mortgage