What is important for the broker to have their prospective buyer obtain from a lender before the enter representation?

What is important for the broker to have their prospective buyer obtain from a lender before the enter representation?

• A. Prequalifying Questionnaire
• B. Prequalified Letter
• C. Mortgage Commitment
• D. Credit Report

Answer: (B)

Having the buyer obtain a lender’s prequalification before you enter representation helps establish financing readiness upfront. A prequalified letter shows the buyer has been reviewed by a lender and is likely to qualify for a loan up to a specified amount based on basic financial information. This gives you and any seller confidence in the buyer’s purchasing power and helps set a realistic price range and timeline for offers. A prequalification questionnaire is just a form the buyer fills out and doesn’t verify anything with a lender. A mortgage commitment is a formal loan approval that comes after underwriting and isn’t something you’d have before representing the buyer. A credit report reveals credit history but doesn’t by itself prove loan eligibility. So the prequalified letter is the clearest, lender-backed indication of financing readiness to start the process.

Having the buyer obtain a lender’s prequalification before you enter representation helps establish financing readiness upfront. A prequalified letter shows the buyer has been reviewed by a lender and is likely to qualify for a loan up to a specified amount based on basic financial information. This gives you and any seller confidence in the buyer’s purchasing power and helps set a realistic price range and timeline for offers.

A prequalification questionnaire is just a form the buyer fills out and doesn’t verify anything with a lender. A mortgage commitment is a formal loan approval that comes after underwriting and isn’t something you’d have before representing the buyer. A credit report reveals credit history but doesn’t by itself prove loan eligibility. So the prequalified letter is the clearest, lender-backed indication of financing readiness to start the process.