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 ?
no pre-qualifying will be done after friday, july, 28, 2017 for this item, and no bid will be accepted from any prospective supplier of dry polymer which has not been pre-qualified.
The private sponsors would be pre-qualified based on the criteria set-forth in Pre-qualification Document (PQD).
LAHORE -- Punjab Saaf Pani Company has floated tenders among 42 pre-qualified international bidders for award of 14 contracts worth US$ 1.
The Abu Dhabi Water and Electricity Authority (Adwea) has pre-qualified 34 companies for its 350 megawatt photovoltaic (PV) independent power project (IPP) in Sweihan.
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).
M2 EQUITYBITES-March 5, 2014-Sonoco announces Envoy Frozen Series of pre-qualified shippers to ensure protection of pharmaceuticals & high-value biologics for a minimum of four days
Although the client has pre-qualified four consortium to bid for the whole metro project, the construction packages will be split into different packages.
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.
NORDIC BUSINESS REPORT-27 November 2009-Noreco says pre-qualified as exploration operator in Baffin Bay(C)1994-2009 M2 COMMUNICATIONS http://www.
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.
Turkey's Privatisation Administration has announced that 13 companies and joint ventures have pre-qualified for the sale of a 55% stake in national telecomms company, Turk Telecom.