Finance
A West Virginia buyer is pre-approved for a mortgage but has not yet been fully underwritten. Pre-approval means:
AThe loan is unconditionally approved and guaranteed by the lender
BThe lender has reviewed the buyer's financial qualifications and indicates conditional willingness to lend✓ Correct
CThe buyer may proceed without further lender review
DThe interest rate is locked for 90 days
Explanation
A pre-approval letter indicates the lender has reviewed the buyer's income, credit, and assets and is conditionally willing to lend up to a specified amount, subject to final underwriting, appraisal, and other conditions. It is stronger than pre-qualification but not a final loan commitment.
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