What must be true for Georgia and Stan, who have been pre-approved for a $250,000 mortgage?

For Georgia and Stan to be pre-approved for a $250,000 mortgage, it is essential that they have submitted a loan application and that the lender has verified their financial information. Pre-approval is a step in the mortgage process that involves a thorough review of the borrower's financial stability, including income, credit history, and debt-to-income ratio. This process gives lenders the confidence to provide a specified loan amount, as it indicates that the borrowers have been assessed and deemed capable of repaying the loan based on verified financial data.

While the appraisal and inspection processes are important parts of the home-buying process, they occur after pre-approval and are steps that help safeguard the lender's investment during the closing stages. Similarly, having an accepted offer and being under contract, though important for moving forward in a transaction, do not directly influence the pre-approval, which focuses solely on the borrowers' financial readiness. Therefore, the requirement for the verification of their financial information confirms that the loan amount is feasible based on Georgia and Stan's economic profile.