A prequalification is the first step on the path toward a loan approval. If you’ve provided information to a lender and the lender has told you “looks good”, you are prequalified. The exchange of information can be very informal, involving as little as a brief phone call or email exchange. A more in depth prequalification involves gathering financial papers and authorizing a credit check.

We have a strong preference for a more thorough prequalification. We’ll always do our best with whatever information you provide, but the more you share, the more accurate and thorough we can be. (The programming acronym “GIGO” comes to mind.)

Be careful not to confuse a prequalification with a pre-approval. Regardless of how thoroughly you are prequalified, your loan is not pre-approved until an underwriter reviews it. Only an underwriter has the authority to issue a true pre-approval. We strongly recommend getting pre-approved (not just prequalified) before beginning to shop for a home.