prequalification

Prequalification is an initial step in the loan or mortgage process where a lender assesses your financial information—such as income, assets, and debts—to determine how much you might be approved to borrow. It's a preliminary estimate that helps you understand your borrowing power before formally applying. Prequalification usually involves a simple review of your provided details and doesn’t require a detailed credit check or documentation. It’s a useful starting point to gauge affordability and strengthen your position when shopping for a home or other large purchase.