Get a mortgage pre-qualification
Mortgage pre-qualification is an informal evaluation that helps you determine how much home you can afford. Get pre-qualified or even preapproved before you start shopping for a home.
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NerdWallet's Get a mortgage pre-qualification
Frequently asked questions
- What is a mortgage pre-qualification and why does it matter?
With a mortgage pre-qualification, a lender gives you an informal evaluation of whether you meet minimum requirements for a loan and how big that loan may be. This is a crucial step for those who aren’t sure whether they’re financially ready to buy a home. However, if you’re confident in your finances or have already been pre-qualified, you might want to get preapproved instead.
- How long does it take to get pre-qualified for a mortgage?
You can get pre-qualified in a couple of days or less. To get pre-qualified, you tell a lender some basic information about your credit, debt, income and assets. In return, you’re told how much you may be able to borrow. Keep in mind that the evaluation is informal and nonbinding because the lender doesn’t verify the information you provided or look at your credit report.
Depending on the lender, pre-qualification can happen in person, over the phone or online.
- What's the difference between pre-qualification and preapproval?
Unlike pre-qualification, preapproval requires proof of your debt, income, assets, credit score and history.
To get preapproved, you’ll need to provide documentation such as pay stubs, tax records and proof of assets. Once the lender verifies your information, which may take a few days, it should supply a preapproval letter you can show a real estate agent or seller to prove you’re able to buy a home.
Remember that pre-qualification doesn’t guarantee preapproval. You can still be turned down if your financial documents don’t support the numbers you reported.
- Why should I shop multiple lenders?
You could save thousands of dollars by shopping around. However, many consumers don’t do that. In a 2015 report, the Consumer Financial Protection Bureau found that 77% of consumers apply to only one lender or broker when seeking a mortgage. By shopping just three different lenders, borrowers could save more than $3,500 in just the first five years, according to the CFPB.
