Steps in the loan process and the difference between qualifying and pre-aproval.

You are representing a buyer-client who has asked you the following questions. How would you respond?

1. Describe the steps in the loan process and explain the difference between prequalifying and preapproval.
2. Describe the purpose of TRID and the various sections of the form.
3. Describe the three appraisal approaches to value and how the bank uses this information in the loan qualification process?
4. Identify the three primary loan documents and the purpose of each.
5. Describe the difference between a mortgage broker and a mortgage banker and which one would you recommend the buyer to use?

Sample Solution