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 ?
Tenders are invited for Education Authority Pre-Qualified List for Building Works (PQL-BW) - Open to New Entrants 06
The drug regulation authority allows registration of only World Health Organisation pre-qualified vaccine in Pakistan.
Some people think that "pre-qualified" and "pre-approved" can be used interchangeably, but this is not the case.
class="MsoNormalThe Directorate of Criminal Investigations (DCI) invaded Kenya Power offices to get the audit report prepared over the selection of companies unprocedurally pre-qualified to offer services which gave rise to the fraudulent payment of Sh159 million, the court heard Tuesday.
Hundreds of companies were pre-qualified despite having no record of legal status, were registered after the pre-qualification or presented fake documentation.
(QASPL) and new bid dates will be communicated later to pre-qualified bidders.
(QASPL), while the new bid dates will be communicated later to pre-qualified bidders.
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$ 1.15 billion to provide safe and clean drinking water to over 23 million peoples in 7,496 villages of ten districts with highly underground polluted water in the province.
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.
The bid documents of these works were issued on February 12, 2016 to pre-qualified bidders for submission on May 12, 2016.
Muscat: As many as 19 companies or consortia have been pre-qualified for four different engineering, procurement and construction (EPC) packages of Liwa Plastics Industries Complex (LPIC) in Sohar.