Jane and Smith are considering the purchase of a home in downtown Minneapolis. They approached Larson's Mortgagers Inc. to arrange for the financing needed for their home. This process of arranging with a mortgage lender in advance of buying a home is called:
A)foreclosure.
B)a contingency auction.
C)prequalification.
D)a real estate short sale.
E)diversification.

Question

Quizplus · Accepted Answer

Prequalification is the process where a lender evaluates a potential borrower's financial status to determine how much and on what terms the lender is willing to provide a mortgage before the borrower has chosen a specific home.

Jane and Smith Are Considering the Purchase of a Home