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 ?
Currently, there are only four companies in the world that create prequalified vaccines, that is, certified by WHO after a long process of evaluation of their safety and effectiveness.
Summary: The Ministry of Energy and Water launched a Request for Proposals for the purchase of Floating Storage and Regasification Units (FSRUs), after 13 international and local consortiums prequalified to participate in the tender.
The shortage of anti-rabies vaccines was caused by the increasing number of animal and canine bites and the temporary suspension of DOH's procurement of World Health Organization (WHO) prequalified vaccine called Rabipur.
In a statement on its website, OPWP announced that it has prequalified 12 applicants in response to a request for qualification (RfQ) tender for the development of Ibri II Solar IPP which attracted interests from 28 companies in February.
Summary: Lebanon added eight companies Wednesday to its list of firms that will be allowed to bid in the country's first offshore oil and gas licensing round, bringing the number to 53 "prequalified" companies.
Summary: 18 consortium firms prequalified for civil, technology works.
SGS Life Science Services' site in Wavre, Belgium, has received prequalified status from the World Health Organization (WHO).
RIYADH: Saudi Arabia's oil ministry said yesterday it had set March 7 as the deadline for prequalified companies to present detailed proposals to build an export refinery in Jazan.
The winner will be determined after consultations with the prequalified firms.
A list of prequalified companies will be announced in April this year and the government should ink a first agreement by February 2014, Bassil said.