Prequalification

(redirected from pre-qualified)

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 ?
Muscat: As many as 18 consortiums have been pre-qualified for civil work and another five consortiums for the prestigious 2,244-km-long Oman national railway project, according to sources at Oman Railway Company (ORC).
The Civil Aviation Authority has pre-qualified a number of Saudi companies to compete with about 20 international firms for the project of developing Prince Mohammed Bin Abdul Aziz International Airport in Madinah.
March 23 /PRNewswire/ -- With "THE EVENT Spring '09" at Stadium Lofts happening on Saturday, March 28, more than 200 serious homebuyers visited the property this past week and 43 have already pre-qualified and received an "Event Pass" for this one-day home buying opportunity.
25 as the deadline for eight firms pre-qualified for a $1.
According to Murphy, "Innvest accepted the listing and, prepared the property for market with a complete due-diligence package, exposed the property to our market of pre-qualified buyers for only two weeks, and then presented several offers to the seller.
Once the candidate is pre-qualified, then a formal connection is initiated between the candidate and the client company.
Connex had pre-qualified for the Thameslink franchise but Arriva, which runs bus services across the Midlands, would now join the bid, the two firms said in a statement.
El Paso is part of a consortium, with Gaz de France and Israel's Amisragas, that is pre-qualified to submit a bid.
When Sheftel, owner of The Candy Factory, received an unsolicited letter from Great Western Bank that he was pre-qualified for a $50,000 line of credit, he thought it would be a good way to put a small pool of money to work.
ABB Robotics has been selected by the United States Postal Service (USPS) as a pre-qualified integrator for general material handling systems, expanding the company's scope of supply beyond robotic containerization systems (RCS), which ABB has been providing to the USPS since 1999.
Contract awarded for this eoi is stage 1, where tenderers will be pre-qualified using the criteria listed in clauses 1.
The authority has earlier asked pre-qualified companies to submit their bids for the consultancy work.