Pre-qualification is a quick, informal estimate of how much you might be able to borrow based on self-reported financial details like income and debts. It helps with budgeting but doesn’t guarantee loan approval or a commitment from the lender.

Pre-Qualification vs. Pre-Approval

• Pre-Qualification: A basic estimate of borrowing power, based on unverified information.
• Pre-Approval: A detailed review with credit checks and document verification, resulting in a conditional loan offer and stronger credibility with sellers.

Understanding these steps can help you better prepare for the home-buying process.