Finance
A Mississippi homebuyer's 'preapproval letter' from a lender indicates that:
AThe loan is guaranteed and will definitely close
BThe lender has reviewed the borrower's financial information and determined they are likely to qualify for a loan up to a specified amount, subject to final underwriting✓ Correct
CMREC has approved the buyer for financing
DThe buyer does not need a formal loan application
Explanation
A preapproval letter indicates the lender has reviewed income, assets, and credit and conditionally agrees to lend up to a specified amount, subject to a satisfactory appraisal and final underwriting. It is stronger than pre-qualification but not a loan commitment.
Related Mississippi Finance Questions
- A Mississippi borrower's loan application is approved with 'conditions.' This means the loan is:
- A Mississippi homebuyer's lender orders an appraisal that comes in $15,000 below the contract price. Which statement is most accurate?
- A Mississippi homeowner with $80,000 equity uses a home equity line of credit (HELOC) to fund renovations. The HELOC's 'draw period' typically allows:
- A Mississippi commercial lender requires a 'personal guarantee' from the principals of a borrowing LLC. The personal guarantee means:
- The 'index' used in an adjustable-rate mortgage in Mississippi is typically:
- Which of the following is a 'government-backed' mortgage loan program used in Mississippi?
- A Mississippi 'mortgage broker' differs from a 'mortgage lender' in that a mortgage broker:
- A Mississippi homebuyer calculates that they can afford a maximum monthly PITI payment of $1,400. If property taxes are $200/month and insurance is $100/month, the maximum monthly P&I is:
Practice More Mississippi Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Mississippi Quiz →