Preapproval Desk glossary
Key terms
Desk answer
These terms come up when getting a mortgage preapproval, each with a primary source.
Last reviewed against the primary sources listed below.
- Prequalification
- An informal estimate of what you might borrow, often without document review. Source: CFPB: What's the difference between a prequalification letter and a preapproval letter?
- Preapproval
- A lender's written statement of how much it may lend, based on a review of your finances. Source: CFPB: What's the difference between a prequalification letter and a preapproval letter?
- Qualifying income
- The income a lender counts after its rules, such as averaging self-employment income. Source: Fannie Mae: HomeView homebuyer education
- Verification of employment
- The lender's check that you work where you say, often redone before closing. Source: CFPB: Buying a house