What is Pre-Qualification?
Pre-qualification is an initial assessment by a lender of how much you might borrow, based on self-reported financial information, without a full credit check or verification.
Pre-qualification is a preliminary step where a lender estimates how much you may be able to borrow based on information you provide about income, assets, and debts. It usually involves a soft credit pull or no credit check, so it does not affect your credit score. Borrowers use pre-qualification to gauge affordability and to show sellers they are serious. However, it is not a commitment to lend. Watch for lenders that issue pre-qualifications without verifying documents; these can be misleading. For a stronger position, seek pre-approval, which involves underwriting and verified information.
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