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A rule of conduct or procedure established by custom, agreement, or authority. The body of rules and principles governing the affairs of a community and enforced by a political authority; a legal system: international law. The condition of social order and justice created by adherence to such a system: a breakdown of law and civilized behavior. A set of rules or principles dealing with a specific area of a legal system: tax law; criminal law. A piece of enacted legislation. What is Law?
Mortgage Pre-qualification

Pre-qualification means that a loan officer has taken some information from the borrower, but not verified any of it.

With a pre-qualification, the borrower typically has not stated their social security number, so it is not possible to check credit. A borrower will give their employment, income and asset information and the amount of current monthly debt.

In addition a borrower is asked about their general credit worthiness. Based on this quick work up the borrower will be told that they pre-qualify for a certain loan amount.

For example, if the borrower makes $15/h or $2600/month this is then calculated to an industry-standard 36% debt to income. So if a borrower makes $2600/month they would be pre-qualified at a total debt of $936 (this includes any monthly payments, including car & credit card min. amount; along with the proposed housing payment of principal, interest, taxes and insurance)


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