Prequalify for home loan Meaning and Definition
Prequalify for home loan
Pronunciation
/prɪˈkwaːlɪfaɪ/
Part of Speech
Noun, Verb
Definition
A preliminary assessment by a lender of a borrower’s creditworthiness and ability to repay a mortgage loan, based on financial information and credit history.
Examples
- We prequalified for a home loan before making an offer on the property.
- To get a prequalification, we provided our financial documents and credit report.
Synonyms
- Mortgage evaluation
- Home loan assessment
Antonyms
- Rejection
- Decline
Etymology
The term “prequalify” is derived from the combination of “pre-” meaning “before” and “qualify” meaning “to meet the necessary requirements”.
Usage Notes
Prequalification is often done before applying for a mortgage loan, and can affect the interest rate and loan terms offered.
Cultural References
Prequalification is a common practice in the real estate industry and is often emphasized as a crucial step in the home buying process.
Idiomatic Expressions or Phrases
“Prequalify for a mortgage” is a common idiomatic expression used in real estate and finance.
Related Words or Phrases
Mortgage, loan, credit check, financial statement
Collocations
Prequalify for a mortgage, get prequalified for a home loan, do a mortgage check
Frequency of Use
Prequalification is a common practice in the mortgage industry, with over 70% of borrowers prequalifying before applying for a loan.
Common Misspellings
Prequalify, pre-qualification, pre-qualify