A borrower asks why their pre-qualification amount differs from their final approved loan amount. What is the most accurate explanation an underwriter should provide?
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A
Pre-qualification is based on stated information without verification, while the approved amount reflects verified income, assets, and credit
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B
Pre-qualification uses stricter guidelines than final underwriting
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C
The approved amount always exceeds the pre-qualification because underwriters are more lenient
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D
Pre-qualification is legally binding, so the difference must be explained in writing to regulators