MortgagesHomebuying Glossary
Pre-Qualification
Also known as Prequalification
An informal, quick estimate of what you might be able to borrow, based on self-reported information.
In plain English
Pre-qualification is a lender's rough estimate of your borrowing power based on numbers you provide yourself, without verifying documents. It's useful for early planning but carries little weight with sellers.
Why it matters
Don't confuse pre-qualification with pre-approval — sellers and agents take pre-approval far more seriously once you're ready to make offers.
Where you'll run into it
Guides and tools on TheBuyingPath that cover pre-qualification in context.
Related terms
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