Pick the correct statement. Prequalification is a lender's estimate of how much you can afford to borrow, based on your gross income and debts.

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
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E Working with Electronic Documents & eSigning
How to Shop for a Mortgage
How to Shop for a Mortgage
Question 4 of 10
Pick the correct statement.
Prequalification is a lender's estimate of how much you can afford to
borrow, based on your gross income and debts.
Prequalification means that
you
have approval from a lender to borrow up to
$100,000.
Getting Started:
The Big Picture
Are You Ready to
Own a Home?
Transcribed Image Text:* © 93% C PM Thu Feb 24 AA A education.frameworkhomeownership.org Framework Online Homebuyer Course - Framework Ho... E Working with Electronic Documents & eSigning How to Shop for a Mortgage How to Shop for a Mortgage Question 4 of 10 Pick the correct statement. Prequalification is a lender's estimate of how much you can afford to borrow, based on your gross income and debts. Prequalification means that you have approval from a lender to borrow up to $100,000. Getting Started: The Big Picture Are You Ready to Own a Home?
Expert Solution
Step 1 Introduction

The Prequalification is way of approval in a loan, or mortgage of how much a person can borrow on the basis of income, debt, credit score etc. 

There are various norms, rules and guidelines regarding the lending policy of the institution and depending on the status of the person, he or she is prequalified for the loan or can borrow or get certain services. 

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