Prequalification

(redirected from Prequalifies)

Prequalification

The act or process of determining the approximate amount a borrower will be able to borrow before he/she actually applies for a loan. Prequalification looks at the borrower's current income and debt to make this determination. Prequalification is most common with mortgages. Because the borrower has not applied for the loan, it is not a guarantee of approval, but is rather an estimation. See also: Pre-approval.

Prequalification.

When you prequalify for a mortgage, the lender calculates the approximate amount you'd be able to borrow, based on your current income and debt.

Many lenders offer free mortgage calculators -- sometimes called prequalification calculators -- on their websites to help you estimate how large a mortgage you'd be approved for.

Since you don't complete a mortgage application or provide financial details, prequalification is not a guarantee, and simply helps you determine how much you should plan to spend on a home. But before you're approved for a mortgage, you'll have to go through the mortgage application process, including a credit check, and provide financial documentation.

References in periodicals archive ?
DES prequalifies companies by category using the following first-tier solicitation process:
Summary: Gubre Fabrikalari, a Turkish fertiliser producer: Says prequalifies to participate in Tunisian mining tender, worth up to 2 billion dinar ($1.
tool prequalifies borrowers, properties and loan amounts in seconds, without human intervention.
If the potential borrower prequalifies, the Center will send the person a Community Home Buyer's Education workbook (from the Federal National Mortgage Association (Fannie Mae)) designed to familiarize them with the requirements of home ownership.
Once the carrier has provided IVANS with a list of agents, IVANS solicits, prequalifies, implements and directly bills agents for the broadband services.
The Duval County Public Schools prequalifies all contractors who intend to submit bids for all construction projects exceeding $200,000 and electrical projects exceeding $50,000.
E&S is one of seventeen prime contractors selected by STRICOM for the indefinite delivery/indefinite quantity contract, which prequalifies them to bid for contracts valued at up to $4 billion over the next eight years.
He figures his chosen media prequalifies his audience as the type he's wanting to be associated with.
Using First Advantage, employers can customize a five-mi "First Advantage gives employers a s tep up on competiti on by accelerating their recruiting," said Jim Poants and prequalifies them before a job applicns.