Prequalify for a mortgage

What is "prequalifying"?

Prequalifying for a loan is just a fancy way of saying “figuring out how much you can afford to spend on a home.” Prequalifying shows you where you stand financially, based upon your current income, debt and savings. In doing so, you can determine:

an estimate of a home purchase price and monthly house payment that you can afford,
how much money you will need for the down payment (the difference between the sales price and the amount of your mortgage), and
budgeting goals you need to set and achieve.