What Is Pre-Qualification?
Pre-Qualification: A quick estimate of what you could borrow, based on information you report but don't verify.
Also called: prequal
Pre-qualification is an early estimate of how much you might be able to borrow, based on the income, debts, assets and credit range you report. Nothing is verified, and it often doesn't involve a hard credit check.
When it's useful
- Setting a budget before you start shopping
- Comparing programs at a high level
- Deciding how much to save
How it differs from pre-approval
A pre-approval verifies your documents and credit, and usually runs through automated underwriting. Sellers give much more weight to a pre-approval, especially in competitive markets.
Good to know
Unbeatable's buying power estimate works like a pre-qualification: it's instant and based on your profile. Move to a pre-approval before you make offers.