What Does Prequalified Mean? Prequalification means the creditor has done at least a basic review of your creditworthiness to determine if you're likely to qualify for a loan or credit card. Consumers initiate this process when they submit a prequalification application for a loan or card.

What is pre qualified vs pre-approved?

Pre-qualifying is just the first step. It gives you an idea of how large a loan you'll likely qualify for. Pre-approval is the second step, a conditional commitment to actually grant you the mortgage.

What does pre qualifying do?

What Does it Mean to be Pre-Qualified? Being pre-qualified means a lender has decided you will likely be approved for a loan up to a certain amount, based on your current financial situation. To get pre-qualified, you simply tell a lender your level of income, assets, and debt.