What is the pre -qualification?

Pre -qualification is a method that financial officials or credit officials use to determine whether a consumer is a loan worthy of certain qualification characteristics of personal finances. This may include pre -qualifying loans for small or large purchases, loans to improve home, loans to start business or loan for debt consolidation. The pre -qualification process generally begins with a consumer who initiates a loan application and provides detailed information on tangible assets, loan and financial history.

Pre -qualification must not be confused with the date of preliminary approval, which is based on certain tangible assets such as property ownership or cash, in addition to low risk factors associated with debt and credit history. Preliminary approval simply means that someone is automatically eligible for a state -based credit form, such as the owner of the house or meeting some other eligible criteria. The pre -qualification lies in the fact thatE must meet certain criticias to be eligible, therefore the loan is not automatically guaranteed or assumed.

In order to be qualified, the consumer generally initiates the process by contacting the bank or financial institution to start a loan application. This can happen in person, by phone or via the Internet. The consumer provides information about his personal financial history, work history, credit history, personal assets and intention for the amount of loans. This information is then evaluated by the loan administrator to see if the consumer meets the initial credit value on the basis of the amount of money associated with the provision of money to the consumer.

It is important to realize that the pre -qualification process does not bind or bind to the financial institution to lend to the consumer. Rather, it provides the consumer the opportunity to initiate a credit applicationCikation further by providing a legal permit finallyAnni institution for investigating work facilities, income, banking records, credit rating and other financial history of consumer further. Once the consumer has signed the pre -qualification, the bank, the creditor or the mortgage company has the right to make complete background search to determine the actual credit risk that the consumer can store.

At any time during the pre -qualification process, the consumer has the right to change the view of the creditor's receipt from the creditor. It is often that consumers buy with local banks and credit companies to find the lowest interest rates of repayment and the fastest way to the necessary funds. In view of this, many financial institutions use the pre -qualification process to try to get consumer to commit to the use of services provided by the quick processing of the loan application and offering the best rates. The consumer gets an estimate of how much can be an ex -tendency, how long and what average monthly payments will be during this time, which may befeasting factor.