Mortgage Prequalification Calculator

Using a mortgage prequalification calculator can start the ball rolling when you enter the market to purchase a property. It can save time by giving you an estimate of just how large a mortgage you may qualify for. This is a preliminary estimate because lenders will have to take into account (and verify) all of your financial information such as credit history and score, income and job history, assets and debt level.

It's important to remember that in the eye's of the lender, a mortgage pre-qualification letter simply means that a loan officer has reviewed your financial information and concluded that you may be eligible for a certain maximum mortgage amount or home purchase price. In this respect, a bank pre-qualification letter is only a "preliminary" evaluation of how much you qualify for based on your financial situation.

A prequalification letter then is not a guarantee of the amount that a mortgage lender will eventually lend you - it is simply a starting point. A preapproval letter, however, is more official because lenders have gone through and verified all the financial information provided and determined a house price and mortgage amount range.

However, even a preapproval letter is still not a mortgage commitment that is carved in stone. This is because the loan still must be "officially underwritten and approved" before funding for the property can be given.

So, now that the basics of mortgage prequalification have been discussed, you can use the calculator below to get an idea of how much you may qualify for. To be of value, the prequalifying information that you input must be accurate and represent your true financial situation. This will save you a lot of time when purchasing a property.

For more information about real estate financing, please visit " The Landlord's Library " book collection.

Return from Mortgage Prequalification Calculator
to Mortgage Calculators