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Mortgage Glossary

Prequalification

Mike Starr·Reviewed August 2026

Mortgage prequalification is an informal estimate of how much you may be able to borrow, based on self-reported financial information such as income, debts, and assets — without a formal credit check. It gives buyers a general sense of their budget but carries less weight than a full preapproval. Prequalification does not guarantee a loan or a specific interest rate.