Which statement about pre-qualification of a buyer is true?

Which statement about pre-qualification of a buyer is true?

• A. Pre-qualification is a protective measure for the buyer only
• B. Pre-qualification is a seller's obligation during offers
• C. Pre-qualification is used to protect the seller by ensuring the buyer can obtain financing
• D. Pre-qualification has no role in sale

Answer: (C)

Pre-qualification is an initial, informal check by a lender of how much a buyer might borrow, based on a quick review of income, assets, debts, and credit. This helps the seller feel more confident that the buyer can obtain financing, making the offer stronger and the deal more likely to close. It’s not a guarantee—final underwriting, verification, and appraisal are still needed—and it’s not primarily the seller’s obligation either. It does play a real role in a sale by signaling financing viability to the seller.

Pre-qualification is an initial, informal check by a lender of how much a buyer might borrow, based on a quick review of income, assets, debts, and credit. This helps the seller feel more confident that the buyer can obtain financing, making the offer stronger and the deal more likely to close. It’s not a guarantee—final underwriting, verification, and appraisal are still needed—and it’s not primarily the seller’s obligation either. It does play a real role in a sale by signaling financing viability to the seller.