Know the difference between preapproval and prequalification.
Pre-qualifying yourself before you start looking for a home gives you a general idea of the price range you can afford. Please fill out the form below to submit a comment. You can be pre-qualified by a lender, by a real estate agent or you can do it yourself.
It will not nail-down an interest rate for you, and that factor and others affect the monthly payments a bank will allow you to make. The term means that someone has taken a general look at your income and expenses and plugged them in to a debt-to-income ratio formula. Your real estate agent should be able to advise you about potential problems that could affect your purchase.