What pre-qualification means
When you pre-qualify for a loan, the lender has determined that you are likely eligible for a loan through them, based on a soft inquiry of your credit report. Going through the pre-qualification process can help you figure out which lenders may be the best fit for your situation.
While pre-qualification is not a guarantee of an offer, most people who receive a pre-qualified offer are approved for a loan when applying directly through the lender.
How pre-qualification differs from a loan application
Through our pre-qualification form, the lender is considering self-reported information. To make a decision on an official loan application, the lender would ask for documentation to verify the information you provided (looking through your credit report in more detail, verifying income, employment history, education, etc.)
You should also know:
- If you do not pre-qualify for a loan, the lender may choose to send an adverse action notice explaining the reason they could not extend an offer. These notices can come through email or physical mail, and they do not mean that an actual application was submitted on your behalf.