The process of determining whether a customer has enough cash and sufficient income to meet the qualification requirements set by the lender on a requested loan. It is subject to verification of the information provided by the applicant. The Qualification may or may not take into account the credit history of the borrower.

A lender's preliminary estimate of how much money a prospective homebuyer may borrow prior to actually applying for a loan.

Based on stated income, assets and debt. Information not verified, not as useful or informative as a Pre-Approval.

A preliminary assessment of the buyer's ability to secure a loan, based on a specific set of lending guidelines and representations made by the buyer. A prequal is not a guarantee or commitment by the lender to extend credit.

A request by a prospective loan applicant for a preliminary determination of whether the prospective applicant would likely qualify for credit under a lender's standards, or of the amount of credit for which the prospective applicant likely would qualify. Some lenders evaluate pre-qualification requests through a procedure that is separate from the lender's normal loan application process; others use the same process. Pre-qualification is generally not a commitment to lend.

Determining, in advance of a loan application, how much money a prospective homebuyer will be eligible to borrow.

The process to determine how much a perspective buyer may be able to pay before the loan application.

The process whereby a lender reviews your qualifications and renders an opinion as to whether or not you get a loan—and how much. Contrast with "preapproval" above.

a brief evaluation of your ability to qualify for a particular loan amount

a commitment from the lender that says you are good for the money

a compilation of figures given in order to roughly calculate debt to income to see if you may qualify for a loan

an assessment by a Creative Home Mortgage Loan Officer of your income, assets, debts, and credit history used to determine your buying power

an estimate of how much mortgage you may qualify for based on preliminary information that you have provided to a loan officer

an estimate of how much of a mortgage payment you can afford

an estimate of how much you can afford in a mortgage payment

an informal discussion between borrower and lender

an informal discussion between you and the lender and involves a simple calculation considering several factors, but primarily your income

an initial discussion between yourself and a lender

an unofficial estimate of the home you can afford

a quick and easy way to obtain a preliminary credit grade designation and pricing based on minimal loan and credit information provided by the broker

a simple, quick review which only tells you how much of a loan you can afford, and is subject to many variables

a statement by a loan officer that a person appears qualified based on the answers to some questions

An informal determination by a lender or mortgage broker of the loan amount a buyer can afford to carry.

A process by which a potential home buyer qualifies for a home mortgage before making an offer on a house. A lending institution agrees to make a loan in the specified amount to the person it has pre-qualified.

Providing financial information (credit ratings, employment status and income, and outstanding debts) to a lender in order to calculate a suitable mortgage for the buyer. This is not a guarantee or commitment by the lender to extend credit. It is helpful in showing how large a mortgage the potential buyer can handle and how much house they can afford.

Process of determining, before applying for loan, how much money a prospective homebuyer is eligible to borrow.

The process of determining how much money a prospective homebuyer is eligible for before applying for a loan.

A lender's informal determination of the maximum amount an individual is eligible to borrow.

The application process by which a potential PLUS or private loan borrower can seek faster credit approval results.

Pre-qualification classifies you according to your expertise and capability in specific work categories within a specific financial range. Pre-qualification is only required for Building Construction and Roads and/or Bridges consultants and contractors.

There are the first two steps in applying for a mortgage loan. First, a lender or broker pre-qualifies you. Pre-qualification determines whether you have the financial resources to match the size of loan you are requesting. Information is often not verified at this step. It is a preliminary step to screen your viability as a loan applicant. Pre-approval is the next step. It requires much more detail. You will need to verify your income and down payment, for instance. A lender will determine whether you meet its underwriting guidelines. A pre-approval signifies that a lender will make you a loan for the amount that you are pre-approved.

A process in which the loan officer calculates the housing-to-income ratio and the total debt-to-income ratio to determine an approximate maximum mortgage loan amount.

The process that determines your qualification to receive a mortgage loan and the loans maximum amount.

A process where a lender or a REALTOR® determines how large a monthly payment a purchaser can afford. Lenders generally allow a buyer to apply 28% of their monthly income towards PITI.

The process before the borrower is pre-approved or the loan applied for, how much home a borrower is able to afford.

Informal process where a lender, based entirely upon the information you provide about your financial situation, provides an opinion about the amount of money you may be able to borrow. This is not binding nor necessarily accurate because the lender has not verified any of your financial information.

A preliminary assessment of a buyer's ability to secure a loan, based on a specific set of lending guidelines and buyer representations made. This is not a guarantee or commitment by a lender to extend credit.

It refers to an informal evaluation of your borrowing ability based on the lender's guidelines. No application is submitted and no commitment is made. The evaluation uses general information about your financial situation. It is called "pre-qual" for short.

An estimate of the loan amount for which you could qualify, based on details you provide, such as credit, income, assets, and debt.

Evaluation of a potential borrower's financial status to determine the size and type of mortgage available.

A loan application that is submitted for credit approval before the home to be purchased has been selected.

The process of determining how much a prospective home buyer might be eligible to borrow before he/she has applied for a loan.  This is based only on information provided by the prospective borrower and is only an indication of purchasing power.  This is not a guarantee of approval. (See Pre-Approval)

Loan application package processed and submitted for credit approval when no subject property has been chosen by the borrower.

The process of pre-determining how much money a prospective homebuyer might be eligible to borrow. Pre-qualifying for a loan does not guarantee approval.

A preliminary analysis of a borrower's ability to afford the purchase of a home. An affordability analysis takes into consideration factors such as income, liabilities, and available funds, along with the type of home loan, the likely taxes and insurance for the home, and the estimated closing costs.

Based on the information provided by the borrower with reference to credit, income, assets, liabilities, debts, employment history and down payment, a determination is made that the applicant would/could meet lender guidelines. Nothing has been verified and in most instances a pre qual letter is worthless to sellers. However, discussing all of the above with a knowledgeable mortgage consultant, can be very helpful to the borrower in accessing risk and debt tolerance. Also, the discussion can be very beneficial in tailoring the proper loan product for the borrower.

The process of determining how much money a prospective home buyer will be eligible to borrow from a given lender.

a general analysis of your financial position, with a specific property identified, compared to the Lender’s established guidelines.

The process of reviewing a prospective borrower's credit and payment capacity prior to approving a loan.

The process of determining how much money a prospective home buyer will be eligible to borrow before he or she applies for a loan.

informal estimate of how much financing a potential borrower might expect to obtain, done before paying substantial loan application fees.

The process to determine how much money a buyer will be eligible to borrow before they apply for a loan.

A non-binding evaluation of a prospective borrowerâ€(tm)s finances to determine how much he or she can borrow and on what terms.

Less formal that pre-approval, pre-qualification usually means a written statement from a loan officer indicating his or her opinion that the borrower will be able to become approved for a mortgage loan.

Procedure to determine how much money a potential homebuyer will be eligible to borrow prior to actually applying for a loan.

Tentative establishment of a borrower's qualification for a mortgage loan amount of a specific range, based on the borrower's assets, debts, and income.

An informal process in which a lender will offers an opinion on how much money you may be able to borrow. This opinion is based entirely on the financial information you provide and is neither binding nor necessarily accurate because lenders have not yet verified your financial information.

an informal way to see how much you may be able to borrow. Some lenders will "pre-qualify" an individual without paperwork, if they know the individual's income, long-term debts, and how much money is available for a down payment. Pre-qualification helps you arrive at a ballpark figure of the amount you may have available to spend on a house.

A lender informally determines the maximum amount an individual is eligible to borrow.

A process whereby a borrower may obtain an estimate of the mortgage amounts he or she may borrow (Call us today and get Pre-qualified!).

A preliminary evaluation of your financial status by a lender to estimate the amount and type of loans available to you. This evaluation does not include a 3rd party credit report, and the lender does not formally commit to giving you a loan.

An educated opinion by a mortgage consultant as to the amount of a loan a buyer should qualify for, based on current market conditions and buyer-provided information.

Informal estimate of how much financing a potential borrower might expect to obtain. Pre-Qualification does not require any proof or documentation to support employment, income, debt or credit Not the same as pre-approval.

Also known as supplier appraisal or assessment. It is the process of establishing whether a supplier is capable in all key respects of providing the goods or services required. If firms are appraised for inclusion on approved lists, the process is called pre-qualification.

This refers to the loan officerâ€(tm)s written opinion of the ability of a borrower to qualify for a home loan for a specific property, after the officer has made inquiries about debt, income and savings/assets. The information provided to the officer may have been presented verbally or in the form of documentation, and the loan officer may review a credit report on the borrower.

The process of determining how much money a prospective homebuyer might be eligible to borrow before he or she applies for a loan. When you pre-qualify, you will be asked for information about your credit, assets and debts. Based on the information you provide and the loan type you want, the lender will calculate how large a loan you could qualify for.

The act of going through the mortgage application process before the borrower is ready to borrow, to establish how much money the borrower could obtain under a loan.

A non-binding opinion of how much a borrower will be qualified to borrow.

This usually refers to the loan officer's written opinion of the ability of a borrower to qualify for a home loan, after the loan officer has made inquiries about debt, income and savings. The information provided to the loan officer may have been presented verbally or in the form of documentation, and the loan officer may or may not have reviewed a credit report on the borrower.

A process designed to assist a customer in determining a maximum sales price, loan amount and PITI payment they are qualified for. A pre-qualification is not considered a loan approval. A customer would provide basic information (income, debts, assets) to be used to determine the maximum sales price, etc.

A non-binding process of calculating how much money a potential homebuyer can borrow before applying for a loan. Information submitted during pre-qualification is subject to verification at application.

Qualifying a borrower for a loan amount before looking for a home. Final approval subject to appraisal of property.

The process of determining the amount of money a particular lender will let you borrow. You should strive to obtain pre-qualification with at least two to three separate lenders.

Getting pre-qualified for a loan is a free process and normally takes between 15 minutes to an hour on the phone. The lender will ask you some basic questions about your household income, time on the job, credit history, down payment and personal savings. You should get pre-qualified before looking for properties so you and your real estate agent know in what price range to start looking.

Preliminary recommendation by a lender that a buyer will qualify for a specific mortgage amount based on information provided by the buyer alone and not verified through other sources.

Providing financial information (credit ratings, employment status and income, and outstanding debts) to a lender in order to calculate a suitable mortgage for the buyer. Pre-qualification grants no legal rights, but is helpful in showing how large a mortgage one can handle and, by extension, how much house one can afford.

The process of determining your eligibility for a particular loan.

Some lenders "pre-qualify" mortgage applicants in less than an hour by performing cursory checks. Seldom can a lender fully check an applicant's credit, asset and debt status this quickly, so final approval typically takes at least a few more days. Though such preliminary pre-qualifications may soon lead to a full pre-approval, there is no guarantee until the applicant receives a letter, certificate or wallet-size card bearing the mortgage-holder's name and maximum loan amount.

It is an assessment of the creditworthiness of a potential borrower or a party that is supposed to execute a contract.

The process of determining how large a loan a prospective homebuyer can qualify for; this procedure is done before actually applying for the loan.

An estimate of what a borrower can afford, not a guarantee to lend.

A quick analysis of how much loan you can afford based on verbal information you provide. It will give a general idea of the price range you should shop for a home.

Pre-qualification is a verbal, non-verified interview with a lender to determine how much you can borrow. This is the time to ask the lender questions to determine the best loan options for your situation. During pre-qualification the lender will perform a cursory check of your credit, asset and debt status - usually in less than an hour. Though pre-qualification gives any offers you make an added stamp of approval and may lead to a full pre-approval, final approval takes more time and there's no guarantee that you'll be approved for a mortgage.

The process of determining how much money a prospective homebuyer will be eligible to borrow before a loan is applied for.

The process of pre-determining how much money a prospective borrower might be eligible for. Pre-qualification for a loan does not guarantee approval.

After a loan officer has made inquiries about a borrower's debt, income, and savings, he or she can write a written statement (pre-qualification) about the borrower's chances for qualifying for a home loan.

An early evaluation by a lender of a potential home buyer's credit report plus earnings, savings and debt information. The home buyer gets a nonbinding estimate of the mortgage amount the borrower would qualify for, or how much house the borrower can afford. Buyers who pre-qualify can go a step further and seek pre-approval. Back

Pre-qualifying gives you a general idea of your borrowing power. It is the process of determining how much money you will be eligible to borrow.

The process of determining how much money a prospective homebuyer will be eligible to borrow prior to application for a loan. Information submitted during pre-qualification is subject to verification at application.

Many lenders will pre-qualify a borrower hunting for a loan by completing a preliminary assessment of the buyer's ability to pay for a home.

an informal estimate of the maximum mortgage a borrower could obtain, based on a calculation of available income and existing debt.

An Informal estimate of the "financing potential" of a prospective borrower.

An informal determination by a lender or broker of how large a mortgage a buyer can afford.

Many lenders will prequalify a borrower who is shopping for a loan by completing a preliminary assessment of the buyer's ability to pay for a home.

Usually, a written opinion of the ability of a borrower to qualify for a home loan. This is not a guarantee or commitment by a lender to extend credit. Prepayment Penalty - A charge paid by the borrower to the lender if a mortgage loan is repaid before its term is over.

Pre-qualifying entails speaking with a lender who offers an opinion of the loan amount the buyer is eligible to borrow, without providing any supporting paperwork or credit history. There's no charge for pre-qualification.

A lender's initial evaluation of the home buyer's ability to purchase a home. This should be based on actual review of the buyer's employment, income, savings and debt records.

A lenderï¿1/2s written opinion of a borrowerï¿1/2s ability to qualify a specified loan amount.

A meeting with a lender or mortgage broker to determine how much money the lender would probably be willing to lend to the borrower and how much the monthly payments would be. This is usually a free service with no guarantees.

A letter of opinion from a lender stating how much a borrower can borrow. Usually free, not backed up by any credit report.

This is much looser than pre-approval, usually just a loan officer's written opinion of the ability of a borrower to get a loan. While it's based on certain information provided to the loan officer, there has probably been no documentation to prove the assumptions.

Prior to loan application, pre-qualification determines the type of loan and amount a homeowner will be eligible to borrower based on stated income and review of a credit report. (also see pre-approval)

Less formal than pre-approval, is usually a written statement from a loan officer indicating an opinion that the borrower will be able to become approved for a mortgage loan

an initial evaluation by a lender of a borrower's credit and financial situation to determine eligibility for a loan.

The process of determining how much money you will be eligible to borrow before you apply for a loan. This is a “ballpark” range of your buying power vs. a loan approval from the mortgage company. Can be done over the phone in a few minutes and doesn't cost anything.

working out how much you can borrow from a lender, before you actually apply for the loan

Tentative establishment of a borrower's qualification for a mortgage loan of a specific amount or ability to make monthly payments at a certain level, based solely on debt-to-income ratios. Pre-qualification is an estimate only and is subject to debt and income verification, credit history, property appraisal and other factors.

A non-binding, preliminary check by a lender on an applicant's qualification for a mortgage. Because it is done without a thorough credit check, a pre-qualification does not necessarily mean the buyer will receive final approval for a loan.

The process by which the amount of loan a prospective buyer will be eligible to borrow is determined, based on his or her income and expenses, which can be used to demonstrate the buyer's financial capability to the seller

The process of determining (by a lender, before the home loan is actually applied for) a buyer's ability to pay and how much money he or she may be eligible to borrow. Pre-qualification is an estimate only and is subject to, debt and income verification, credit history, property appraisal, etc.