Real Estate Glossary | What is Prequalification??

Q: What is Prequalification?

Prequalification - Prequalification is the process of determining how much money a borrower is likely to be able to borrow based on their creditworthiness and financial situation. This process typically involves a lender reviewing the borrower's credit score, income, debt, and assets. The lender will then provide the borrower with an estimate of how much they may be able to borrow, which can help the borrower determine how much they can afford to spend on a home.

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