Mortgage Pre-Qualification

Definition

An informal assessment of how much a lender thinks you can borrow based on self-reported information—basically a lender's educated guess before they actually check anything.

Example Usage

I got pre-qualified for $450,000, but that might change once they verify my employment and debt.

Origin

Industry term distinguishing informal qualification from formal pre-approval

Fun Fact

Pre-qualification is not binding and can change dramatically once the lender actually reviews your credit report and bank statements.

Source: CFPB Mortgage Pre-Approval Guidelines

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