What is pre-qualification?

What is pre-qualification?

Answer:

A loan pre-qualification is an informal estimate of the loan you qualify for.

It is a quick calculation you get, sometimes even over the phone, based on your assets, income, and debts, usually without the full evaluation of your credit history. This process does not guaranty you a loan, nor is it a pre-approval. It also doesn't give you credibility with sellers because it does not include all financial aspects. But, it is the first step you take so you can have a quick and rough idea of the house price range you can start shopping for.


Views: 2936        Posted on: May 22 2012        Tags: Definitions, Mortgage