Mortgage Glossary
Pre Qualification
Also called: prequal, prequalification, pre-qual
Definition
An early estimate of what you may be able to borrow, usually based on information you state rather than documents the lender has verified.
Why it matters
It is useful for a first look at budget, but it carries less weight with sellers than a documented pre approval.
Related terms
- Pre Approval
- A lender's written statement of how much you can likely borrow after reviewing your credit, income and assets. It is based on documentation, not just a conversation.
Written by
Manny Oloyede, Mortgage Broker
NMLS #1824463 | Ultimate Mortgage Brokers LLC NMLS #2619461 | Licensed in OH | KY | NC | PA | SC | TN | TX
I have worked in mortgage lending since 2018 out of the Akron / Cuyahoga Falls Branch, helping buyers, homeowners and investors across Northeast Ohio and every state where I am licensed. These guides reflect the questions I answer most often, written the way I would explain them on a call.
General education only, not financial, legal or tax advice, and not a commitment to lend. Guidelines vary by program and change over time. Manny Oloyede, NMLS #1824463. Ultimate Mortgage Brokers LLC, NMLS #2619461. Licensed in OH | KY | NC | PA | SC | TN | TX. Equal Housing Opportunity.
Want this applied to your actual numbers?
Definitions are the easy part. What matters is how the guideline reads against your income, credit and property.