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 ?
Notes: pre-qualifying jar testing will be done between monday, july 24, 2017 through and including friday, july 28, 2017.
The tournament started with its pre-qualifying round today (14 November, 2016) with a draw of 16 players.
ORC, which is responsible for implementing the project, has received 34 quotations from 95 local and international companies for prequalifying themselves for a design-and-build civil infrastructure and railway track contract, while nine quotations have been submitted by 14 local and international firms for pre-qualifying themselves for technology systems for the national railway project.
Lydia Hall, the daughter of Wales rugby international Wayne Hall, got through pre-qualifying as the top British player, along with Tredegar Park's Jo Pritchard, who has been studying in America.
Entry fee for pre-qualifying is $200, and another $200 is required for the Industry Hills qualifier.
According to the seller, 414 2Inn, LLC "Innvest Hotel Brokers' commitment to get the job done was demonstrated from the high-quality marketing package, providing maximum exposure during the marketing process, and to pre-qualifying buyers.
THE fastest drivers in the world yesterday battled to record the SLOWEST Silverstone lap as pre-qualifying for the British Grand Prix turned into a farce.
Local-based trio Wayne Stephens, Matt McGuire and Jon Herbert made it through from the Open Championship pre-qualifying tournaments held yesterday.
Levert demands a particularly high standard of thoroughness in sourcing, checking references, interviewing and generally pre-qualifying the collection of individuals in their personnel database.
Pre-qualifying is not only a guide to your optimal price range, but it's also a red flag to possible problems, like a poor credit rating, that could spoil a deal down the road.
The engine is an online pricing and pre-qualifying portal for the company's most popular Falcon sub-prime and Guardian Seconds A-paper loan programs.
DCSD is interested in pre-qualifying a limited number of insurance producers who will seek competitive, bindable insurance quotes for the school districts major lines of property and casualty insurance business by soliciting insurance quotes and presenting proposals on DCSDs property and casualty insurance coverages/services.