What is prequalification? Prequalification is figuring out how much loan you qualify for before shopping for a home. This is a good idea because it allows you to set realistic limits and goals before you get your hopes up about a specific property. There's nothing worse than falling in love with a home and then realizing that you do not qualify for a loan for the amount being sold. How do I get prequalified?

The best way to get prequalified is to talk to the lender you plan on borrowing from. As a rule of thumb, it's a good idea to talk to at least three different lenders to see what each one is offering. This means that to get prequalified for the maximum amount, you'll want to do some shopping.