Prequalify

To estimate the most expensive home a buyer can afford based on the buyer's income and available liquid assets. The exercise does not obligate the buyer to accept or promise specific Financing but merely indicates that the buyer may be able to afford a home in a specific price range. Compare with Pre-Approval.
Example: Paul's income is sufficient to prequalify for a $250,000 Loan according to the guidelines used for Conventional Loans. Because Paul also can raise $50,000 for a Down Payment he can look at homes costing up to $300,000.