Prequalification

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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 ?
ISLAMABAD -- Chief of the Air Staff (CAS) International Squash Championship will roll into action here at Mushaf Squash Complex, Islamabad with prequalifying rounds being played on September 29.
ISLAMABAD -- Pakistan Tennis Federation (PTF) has announcedteams to participate in the prequalifying round of Junior Davis Cup (boys) and World Junior Tennis Competition under 14 (boys).
Ashghal said the purpose of prequalifying the contractors is to enhance and accelerate the groundwater dewatering processes and standards.
The Sweetwater Union High School Districtis prequalifying General Contractors (Contractor) to bid to perform construction work on District facilities for up to 12 months.
Summary: Lebanon will proceed with the prequalifying bid for offshore oil and gas exploration as scheduled despite the resignation of the Cabinet, caretaker Energy and Water Minister Gebran Bassil said Sunday.
Gillman said he convinced carriers to join the site by prequalifying agents, who pay a $250 fee to register.
The candidates take a prequalifying test and would take the state's Basic Educational Skills Test in California.
The Government of Dominica is in the process of prequalifying contractors for the construction of an international airport.
For example, once the potential customer went through the prequalifying process, it was customary' for HomeSide to call the customer directly, but electronic customers preferred to be contacted via email.
By prequalifying for a mortgage loan, you will learn how much you can afford before you go shopping.
New America Network is currently reviewing properties proposed for the auction and prequalifying them before acceptance; a maximum of 50 properties will be accepted.
serves financial institutions, mortgage lending companies and the automotive, home equity, manufactured housing and consumer lending industries by providing mortgage and specialized credit reports, prequalifying credit reports, modified prequalifying reports and business reports.