Final answer:
The statement is true as the Qualification stage in the loan process includes gathering initial information about the proposed loan's purpose, amount, rate, term, and pricing, crucial for assessing borrower eligibility.
Step-by-step explanation:
True. The Qualification stage does involve preliminary information gathering, which includes understanding the proposed loan's purpose, the amount the borrower seeks, the interest rate, the loan's term, and the pricing. This process is critical in determining whether the borrower meets the financial institution's minimum requirements for a loan and is integral in assessing the feasibility of the loan before moving further into the lending process.
Lenders use this stage to gather essential details about the borrower to make informed decisions about the risk associated with lending money. Items such as credit history, income verification, and collateral evaluation are examined in addition to proposed loan details. The goal is to match the right loan product with the borrower's needs and their ability to repay the loan.