What Is Pre-Qualification?

Pre-qualification is an informal estimate of how much mortgage you may qualify for, based on financial information you provide to a lender. It typically takes minutes, does not require a hard credit pull, and gives you a general price range for your home search. A pre-qualification is not a commitment to lend.

For example, if you tell a lender you earn $85,000 per year with $500 in monthly debts and plan to put 5% down, they might pre-qualify you for roughly $300,000–$340,000. This estimate helps you set a realistic budget before you start touring homes. Keep in mind that your actual approval amount may differ once the lender verifies your income, credit, and assets during pre-approval.

Key Facts

• Time to complete: Usually 10–30 minutes, often available online
• Credit impact: None—typically uses a soft inquiry or no credit check at all
• Documentation required: Self-reported income, debts, and estimated assets
• Validity: Not a guarantee of financing; serves as a preliminary estimate only
• Best used for: Setting a home-search budget and understanding your general price range

Frequently Asked Questions

Is a pre-qualification the same as a pre-approval?

No. A pre-qualification is a quick, informal estimate based on self-reported information. A pre-approval involves verified income, a hard credit pull, and a conditional lending commitment. Sellers and real estate agents generally view a pre-approval as much stronger than a pre-qualification.

Does a pre-qualification affect my credit score?

In most cases, no. Most lenders use a soft credit inquiry or no credit check at all for pre-qualification. A hard inquiry, which can temporarily lower your score by a few points, typically only occurs during the pre-approval process.

How long does a pre-qualification last?

Pre-qualifications are usually valid for 60–90 days, though this varies by lender. Since your financial situation can change, you may need an updated pre-qualification if your home search extends beyond that window.