Finance
Pre-qualification for a mortgage differs from pre-approval in that pre-qualification is:
AA firm commitment by the lender to make the loan
BAn informal estimate based on self-reported information without verification✓ Correct
CRequired before any offer can be submitted
DBased on a complete credit analysis and income verification
Explanation
Pre-qualification is an informal assessment based on the borrower's self-reported income, assets, and debts without independent verification. Pre-approval involves a complete application, credit check, and income verification, providing a stronger (though not final) commitment from the lender.
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