It is the process of arranging with a mortgage lender, in advance of buying a home, to obtain the amount of mortgage financing the lender deems affordable to home buyer.
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A. B. C. D.B
The answer to the question is B. Prequalification.
Prequalification is the process of arranging with a mortgage lender, in advance of buying a home, to obtain the amount of mortgage financing the lender deems affordable to the home buyer. It is an informal process that involves providing basic financial information to a lender, such as income, debt, and assets. Based on this information, the lender provides an estimate of how much the homebuyer may be able to borrow.
Prequalification is an important step in the home buying process because it provides the homebuyer with an idea of how much they can afford to borrow and what their monthly mortgage payments might be. This information can help the homebuyer narrow down their home search to properties that are within their price range. Additionally, prequalification can be helpful when making an offer on a home, as it shows the seller that the buyer has already taken steps to secure financing.
Other options listed in the question are not related to the process of obtaining mortgage financing. The Multiple Listing Service (MLS) is a database of properties that are listed for sale by real estate agents. An earnest money deposit is a payment made by the buyer to the seller to show their commitment to the purchase. A contingency clause is a provision in a contract that outlines certain conditions that must be met before the contract can be fulfilled.