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 ?
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.
Because Purchase Guarantee approves homebuyers up front, rather than just pre-qualifying them, the closing process is easier and shorter.
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.
The company plans to continue its work in this area, conducting system-level testing and pre-qualifying its Flash memory devices for other popular development platforms over time.
While CampusPoint is of great benefit to students and recent graduates, the service makes the campus recruiting effort faster, better, and cheaper for employers who are overwhelmed with resumes: "CampusPoint enabled our organization to recruit recent graduates more efficiently by pre-qualifying them prior to the interview process, and because CampusPoint strives to reach every student at every school, this is a better, more fair process for the students," said Kelly Dobbs, managing director of Staffing and Development at Alaska Airlines.