Prequalify Calculator Mortgage

Estimate your home loan eligibility in seconds with our ultra-precise calculator. Get personalized results including maximum loan amount, monthly payments, and detailed breakdowns.

Introduction & Importance of Mortgage Prequalification

The mortgage prequalification process serves as your financial compass when navigating the complex world of home buying. This critical first step provides a realistic picture of what you can afford before you start house hunting, saving you time and potential heartache. Unlike pre-approval (which involves a hard credit pull and verified documentation), prequalification offers a quick, no-obligation estimate based on self-reported financial information.

According to the Consumer Financial Protection Bureau, homebuyers who get prequalified are 3x more likely to have their offers accepted in competitive markets. The process helps you:

• Understand your maximum loan amount based on current financials
• Identify potential issues in your credit profile early
• Compare different loan scenarios and terms
• Demonstrate seriousness to sellers and real estate agents
• Avoid wasting time looking at properties outside your budget

The prequalification calculator you see above uses the same core financial ratios that lenders examine when evaluating your application. By inputting your income, debts, and other financial details, you’re essentially performing a “dry run” of the lender’s underwriting process. This gives you the power to:

1. Experiment with different down payment scenarios
2. See how credit score improvements could increase your buying power
3. Understand the impact of interest rate fluctuations
4. Compare 15-year vs 30-year mortgage terms
5. Factor in property taxes and insurance costs

How to Use This Mortgage Prequalification Calculator

Our interactive tool provides instant, personalized results with just a few inputs. Follow these steps for the most accurate prequalification estimate:

Step 1: Enter Your Financial Information

Annual Gross Income: Input your total pre-tax income from all sources (salary, bonuses, commissions, rental income, etc.). For couples applying jointly, combine both incomes.

Credit Score: Select the range that matches your current FICO score. If unsure, you can get free estimates from services like Credit Karma or Experian. Remember that even small improvements (e.g., from 680 to 720) can significantly impact your interest rate and loan terms.

Monthly Debt Payments: Include all recurring debt obligations:

• Credit card minimum payments
• Student loan payments
• Auto loan payments
• Personal loan payments
• Alimony/child support payments

Step 2: Define Your Loan Parameters

Down Payment: Enter the amount you can put down upfront. While 20% is traditional (and avoids PMI), many programs allow as little as 3-5% down. Use the slider to see how different down payments affect your loan amount and monthly payments.

Loan Term: Choose between 10, 15, 20, or 30-year terms. Shorter terms mean higher monthly payments but significantly less interest paid over the life of the loan. For example, on a $300,000 loan at 6.5%:

• 30-year term: $1,896/month, $382,560 total interest
• 15-year term: $2,613/month, $170,340 total interest

Interest Rate: Enter the current market rate or the rate you expect to qualify for. You can check daily averages at FRED Economic Data. Remember that your actual rate will depend on your credit score, loan type, and lender.

Step 3: Account for Additional Costs

Property Taxes: The national average is about 1.1% of home value annually, but this varies dramatically by location. For example:

• New Jersey: 2.49%
• Illinois: 2.27%
• New Hampshire: 2.18%
• Alabama: 0.41%
• Louisiana: 0.55%

Home Insurance: Typically costs $1,200-$2,500 annually, but varies based on home value, location, and coverage levels. Coastal areas and regions prone to natural disasters will have higher premiums.

Step 4: Review Your Results

After clicking “Calculate,” you’ll see four key metrics:

1. Maximum Loan Amount: The highest loan you’d likely qualify for based on standard debt-to-income ratios (typically 43-50% max)
2. Estimated Monthly Payment: Includes principal, interest, taxes, insurance, and PMI if applicable
3. Debt-to-Income Ratio: Your total monthly debts (including the new mortgage) divided by gross monthly income. Lenders generally prefer this below 43%
4. Affordable Home Price: Estimated purchase price you can afford based on your down payment and loan amount

Pro Tip: Use the “Payment Breakdown” section to understand where your money goes each month. Many first-time buyers are surprised to learn that taxes and insurance can add 25-50% to their base mortgage payment.

Formula & Methodology Behind the Calculator

Our mortgage prequalification calculator uses the same financial ratios and formulas that underwriters apply when evaluating loan applications. Here’s the detailed methodology:

1. Debt-to-Income (DTI) Ratio Calculation

The cornerstone of mortgage qualification is your DTI ratio, calculated as:

DTI = (Total Monthly Debt Payments + Proposed Housing Payment) / Gross Monthly Income

Most conventional loans require a maximum DTI of 43-50%. FHA loans may allow up to 57% in some cases.

Example: If your gross monthly income is $6,250 ($75,000/year) and your total debts (including the new mortgage) would be $2,800, your DTI would be 44.8% ($2,800/$6,250).

2. Maximum Loan Amount Calculation

The calculator determines your maximum loan amount by working backward from the DTI limit:

Max Loan Amount = [(Gross Monthly Income × Max DTI) - Existing Debts - Taxes - Insurance - PMI] × Loan Term Factor

The “Loan Term Factor” is derived from the mortgage constant formula, which converts the interest rate and term into a monthly payment factor. For a 30-year loan at 6.5%, the factor is approximately 0.00632 (meaning you pay $6.32 per month for every $1,000 borrowed).

3. Monthly Payment Calculation

The standard mortgage payment formula is:

M = P [ i(1 + i)^n ] / [ (1 + i)^n - 1]

Where:

• M = Monthly payment
• P = Principal loan amount
• i = Monthly interest rate (annual rate divided by 12)
• n = Number of payments (loan term in years × 12)

For example, on a $300,000 loan at 6.5% for 30 years:

• i = 0.065/12 = 0.0054167
• n = 360
• M = 300,000 [0.0054167(1.0054167)^360] / [(1.0054167)^360 – 1] = $1,896.20

4. Private Mortgage Insurance (PMI) Calculation

PMI is typically required when your down payment is less than 20%. The annual cost ranges from 0.2% to 2% of the loan amount, depending on your credit score and loan-to-value ratio. Our calculator uses these assumptions:

• Credit Score ≥ 740: 0.22%
• Credit Score 700-739: 0.52%
• Credit Score 660-699: 0.87%
• Credit Score 620-659: 1.32%
• Credit Score ≤ 619: 2.25%

The monthly PMI is calculated as: (Loan Amount × PMI Rate) / 12

5. Property Tax and Insurance Estimates

These are added to your monthly payment:

• Property Taxes: (Home Value × Tax Rate) / 12
• Home Insurance: Annual Premium / 12

Note that some lenders may require you to escrow these amounts, meaning you’ll pay them as part of your monthly mortgage payment, while others may let you pay them directly.

6. Affordable Home Price Calculation

This is derived by adding your down payment to the maximum loan amount:

Affordable Home Price = Maximum Loan Amount + Down Payment

For example, if you qualify for a $280,000 loan and have $20,000 for a down payment, your affordable home price would be $300,000.

Real-World Mortgage Prequalification Examples

Let’s examine three realistic scenarios to illustrate how different financial profiles affect prequalification results. All examples assume a 30-year fixed-rate mortgage with a 1.25% property tax rate and $1,200 annual home insurance.

Case Study 1: First-Time Homebuyer with Moderate Income

Profile: Sarah, 28, single, no dependents

• Annual Income: $65,000
• Credit Score: 710 (Good)
• Monthly Debts: $400 (student loans + car payment)
• Down Payment: $15,000 (5% of home price)
• Current Interest Rate: 6.75%

Results:

• Maximum Loan Amount: $243,000
• Affordable Home Price: $258,000
• Monthly Payment: $1,987 (including PMI, taxes, insurance)
• DTI Ratio: 42.1%
• PMI: $85/month (0.52% annual rate)

Analysis: Sarah qualifies for a respectable loan amount, but her PMI adds $85/month due to the small down payment. If she could save another $10,000 for a 10% down payment, she would:

• Reduce PMI to $68/month
• Lower her DTI to 40.8%
• Qualify for a slightly better interest rate (potentially 6.5%)

Case Study 2: Dual-Income Couple with Excellent Credit

Profile: Mark and Priya, both 35, no children

• Combined Annual Income: $180,000
• Credit Score: 780 (Excellent)
• Monthly Debts: $800 (car payments + minimal credit card balances)
• Down Payment: $80,000 (20% of home price)
• Current Interest Rate: 6.25%

Results:

• Maximum Loan Amount: $720,000
• Affordable Home Price: $800,000
• Monthly Payment: $5,212 (no PMI, includes taxes, insurance)
• DTI Ratio: 38.9%
• Interest Savings vs 6.75%: $123,480 over 30 years

Analysis: With excellent credit and a 20% down payment, Mark and Priya avoid PMI entirely and qualify for the best interest rates. Their comfortable DTI ratio gives them flexibility to:

• Consider a 15-year mortgage to build equity faster
• Allocate extra funds to pay down the mortgage early
• Afford a more expensive home if desired
• Handle potential rate increases without stress

Case Study 3: Self-Employed Borrower with Variable Income

Profile: Javier, 42, freelance graphic designer

• Annual Income: $90,000 (average of last 2 years)
• Credit Score: 680 (Fair)
• Monthly Debts: $1,200 (business loan + credit cards)
• Down Payment: $30,000 (10% of home price)
• Current Interest Rate: 7.1% (higher due to credit score)

Results:

• Maximum Loan Amount: $320,000
• Affordable Home Price: $350,000
• Monthly Payment: $2,845 (including PMI, taxes, insurance)
• DTI Ratio: 47.3% (approaching lender limits)
• PMI: $133/month (0.87% annual rate)

Analysis: Javier’s situation highlights several important considerations:

• Self-employed borrowers often face stricter scrutiny and may need to provide 2+ years of tax returns
• His fair credit score results in a higher interest rate (costing $68,400 more over 30 years vs 6.5%)
• The 10% down payment triggers PMI, adding to monthly costs
• His DTI is high, which might require compensating factors like substantial reserves

If Javier could improve his credit score to 720 and reduce monthly debts by $300, he would:

• Qualify for a 6.75% rate (saving $42,000 over the loan term)
• Reduce PMI to $96/month
• Lower DTI to 43.5%
• Potentially qualify for a $30,000 larger loan

Mortgage Prequalification Data & Statistics

The mortgage landscape has evolved significantly in recent years. These tables provide critical context for understanding prequalification trends and requirements.

Table 1: Credit Score Impact on Mortgage Terms (2023 Data)

Credit Score Range	Average Interest Rate (30-Yr Fixed)	PMI Annual Rate	Typical Down Payment %	Loan Approval Likelihood
760-850 (Excellent)	6.25%	0.22%	10-20%	95%+
700-759 (Good)	6.50%	0.52%	10-20%	85-95%
660-699 (Fair)	6.88%	0.87%	10-15%	70-85%
620-659 (Poor)	7.37%	1.32%	10%	50-70%
580-619 (Bad)	8.12%	2.25%	10% (FHA only)	<50%

Source: Federal Reserve Economic Data (2023)

Key Insights:

• A 60-point credit score improvement (from 680 to 740) could save $40,000+ on a $300,000 loan
• Borrows with scores below 660 pay significantly higher PMI premiums
• Excellent credit borrowers qualify for rates 0.75-1% lower than fair credit borrowers

Table 2: Debt-to-Income Ratio Requirements by Loan Type

Loan Type	Maximum DTI Ratio	Minimum Credit Score	Minimum Down Payment	Key Features
Conventional	43-50%	620	3%	No upfront mortgage insurance with 20% down
FHA	43-57%	580 (3.5% down) 500-579 (10% down)	3.5%	Upfront and annual mortgage insurance required
VA	41% (can go higher with compensating factors)	620 (varies by lender)	0%	No mortgage insurance, funding fee applies
USDA	41%	640	0%	Rural areas only, income limits apply
Jumbo	38-43%	700+	10-20%	Loan amounts exceeding conforming limits

Source: U.S. Department of Housing and Urban Development (2023 guidelines)

Strategic Observations:

• FHA loans offer the most flexible DTI requirements (up to 57% in some cases)
• VA and USDA loans provide 100% financing options for qualified borrowers
• Jumbo loans have the strictest requirements due to higher risk
• Conventional loans become more competitive with 20%+ down payments

Expert Tips to Improve Your Mortgage Prequalification

Use these professional strategies to maximize your prequalification amount and secure the best possible terms:

Credit Optimization Strategies

• Pay Down Revolving Debt: Credit card balances above 30% of your limit hurt your score. Paying a $3,000 balance down to $900 on a card with a $10,000 limit could boost your score by 20-40 points.
• Avoid New Credit Applications: Each hard inquiry can drop your score by 5-10 points. Wait at least 6 months after major credit applications (auto loans, new credit cards) before applying for a mortgage.
• Dispute Errors: According to the FTC, 1 in 5 consumers have errors on their credit reports. Use AnnualCreditReport.com to check all three bureaus and dispute any inaccuracies.
• Become an Authorized User: If you have a family member with excellent credit, being added as an authorized user on their old account can help your credit age and utilization metrics.
• Mix of Credit Types: Having both installment loans (auto, student) and revolving credit (credit cards) can improve your score by demonstrating responsible management of different credit types.

Income and Debt Management

1. Document All Income Sources: Lenders consider:
   • Base salary
   • Bonuses (if consistent for 2+ years)
   • Commission (2-year average required)
   • Rental income (with lease agreements)
   • Alimony/child support (if continuing for 3+ years)
2. Reduce Monthly Obligations: Pay off or consolidate high-interest debts before applying. Even reducing a $400/month car payment to $200 could increase your prequalification amount by $50,000+.
3. Time Bonus Income Strategically: If you’re expecting a bonus, try to have it paid before applying to boost your qualifying income.
4. Consider a Co-Signer: Adding a parent or relative with strong credit/income can help if you’re borderline qualified. Note that they’ll be equally responsible for the loan.
5. Show Employment Stability: Lenders prefer 2+ years at the same job. If you’ve recently changed jobs, be prepared to explain why and show consistent or increasing income.

Down Payment and Asset Strategies

• Gift Funds: Many loan programs allow down payment gifts from family. You’ll need a gift letter stating the funds aren’t a loan.
• Down Payment Assistance: Over 2,000 programs nationwide offer grants or low-interest loans for down payments. Search at DownPaymentResource.com.
• Retirement Funds: First-time buyers can withdraw up to $10,000 from IRAs penalty-free for a down payment (though taxes still apply).
• Seller Concessions: In some markets, sellers may contribute 2-6% of the home price toward closing costs, freeing up more of your savings for the down payment.
• Asset Reserves: Having 2-6 months of mortgage payments in savings can help compensate for higher DTI ratios or lower credit scores.

Market Timing and Loan Selection

1. Lock Your Rate: Once you’re seriously shopping, consider locking your rate to protect against increases. Locks typically last 30-60 days.
2. Compare Loan Estimates: Get prequalified with 3-5 lenders to compare rates and fees. Even a 0.25% difference can save thousands over the loan term.
3. Consider Buydowns: A 2-1 buydown (where the rate is temporarily reduced for the first 1-2 years) can help you qualify for a larger loan if you expect income to rise.
4. Adjustable-Rate Mortgages: ARMs often have lower initial rates (e.g., 5.75% vs 6.75% for fixed). Just be sure you can handle potential rate increases after the fixed period ends.
5. Portfolio Loans: Some banks offer in-house loans with flexible guidelines if you have unique financial situations (e.g., self-employment, high assets but low income).

Post-Prequalification Actions

• Get Pre-Approved: Prequalification is just an estimate. Pre-approval involves verified documentation and carries more weight with sellers.
• Shop Within Your Range: Just because you’re prequalified for $400,000 doesn’t mean you should spend that much. Consider your full budget including maintenance, utilities, and lifestyle costs.
• Monitor Rate Trends: Use tools like the Mortgage News Daily rate tracker to identify optimal locking opportunities.
• Prepare for Closing Costs: Budget 2-5% of the home price for closing costs (appraisal, title insurance, origination fees, etc.).
• Avoid Financial Changes: Don’t open new credit accounts, make large purchases, or change jobs between prequalification and closing.

Interactive FAQ: Mortgage Prequalification Questions

How accurate is a mortgage prequalification compared to pre-approval?

Prequalification provides an estimate based on self-reported information, while pre-approval involves verified documentation and a hard credit pull. Think of prequalification as a “rough draft” and pre-approval as the “final version.”

Key differences:

• Credit Check: Prequalification uses soft pull (no impact); pre-approval uses hard pull (may affect score by 5-10 points)
• Documentation: Prequalification requires none; pre-approval needs pay stubs, W-2s, bank statements, etc.
• Validity: Prequalification is informal; pre-approval letters typically expire after 60-90 days
• Seller Perception: Pre-approval carries much more weight in competitive markets
• Accuracy: Pre-approval amounts are usually within 5% of final loan approval; prequalification can vary by 10-20%

We recommend using our calculator for initial planning, then getting pre-approved when you’re serious about house hunting. The pre-approval process will often reveal opportunities to improve your financial profile before final application.

Does getting prequalified affect my credit score?

Our mortgage prequalification calculator performs a “soft inquiry” that doesn’t affect your credit score. However, when you proceed to formal pre-approval or loan application, lenders will perform a “hard inquiry” that may temporarily lower your score by 5-10 points.

Important credit score considerations:

• Multiple mortgage inquiries within a 14-45 day window (depending on scoring model) count as a single inquiry
• The impact of a hard inquiry diminishes over time and disappears after 12 months
• New credit accounts for just 10% of your FICO score
• If you’re rate shopping, complete all mortgage applications within a 2-week period to minimize score impact
• The score drop from a hard inquiry is usually outweighed by the benefits of securing favorable loan terms

Pro Tip: Check your credit reports from all three bureaus (Experian, Equifax, TransUnion) at AnnualCreditReport.com before applying. Disputing errors could boost your score enough to qualify for better rates.

What’s the difference between prequalified and pre-approved?

While often used interchangeably, these terms represent distinctly different stages in the mortgage process:

Factor	Prequalified	Pre-Approved
Credit Check	Soft pull (no impact)	Hard pull (may affect score)
Documentation Required	None (self-reported info)	Full documentation (pay stubs, W-2s, bank statements, etc.)
Income Verification	None (you provide estimates)	Verified with pay stubs, tax returns, employer contact
Asset Verification	None	Bank statements reviewed for down payment funds
Debt Verification	None (self-reported)	Credit report pulled to verify all debts
Validity Period	Informal (no expiration)	Typically 60-90 days
Seller Perception	Low confidence	High confidence (often required for offers)
Accuracy vs Final Approval	Can vary by 10-20%	Usually within 5% of final approval amount
Cost	Free	Sometimes free, sometimes $50-$100 for credit report
Time Required	5-10 minutes	1-3 days

When to use each:

• Prequalification: Early in your home search to understand your budget range
• Pre-approval: When you’re ready to make offers (required in competitive markets)

How much house can I afford if I make $75,000 a year?

With a $75,000 annual income, your affordable home price depends on several factors. Here’s a general breakdown assuming:

• Credit score: 720
• Monthly debts: $500
• Down payment: 10%
• Interest rate: 6.5%
• 30-year fixed mortgage
• Property taxes: 1.25%
• Home insurance: $1,200/year

Estimated affordability:

• Maximum Loan Amount: $250,000-$280,000
• Affordable Home Price: $275,000-$310,000
• Monthly Payment: $1,800-$2,100 (including taxes, insurance, PMI)
• DTI Ratio: 38-42%

Ways to increase your affordability:

1. Increase down payment to 20% to eliminate PMI (could increase max price by $30,000-$40,000)
2. Improve credit score to 760+ for better interest rates (could save $50-$100/month)
3. Pay off $200-$300 in monthly debts to lower DTI
4. Consider a 15-year mortgage if you can handle higher payments (saves $80,000+ in interest)
5. Look for down payment assistance programs in your area

Use our calculator above with your specific numbers for a personalized estimate. Remember that lenders also consider your employment history, savings, and the property type when making final approval decisions.

What credit score is needed to buy a house in 2024?

Minimum credit score requirements vary by loan type. Here are the current (2024) standards:

Loan Type	Minimum Credit Score	Down Payment Requirement	Notes
Conventional	620	3% minimum (5%+ recommended)	Better rates at 740+
FHA	580 (for 3.5% down) 500-579 (for 10% down)	3.5% or 10%	Mortgage insurance required for life of loan
VA	620 (varies by lender)	0%	For veterans/military; no mortgage insurance
USDA	640	0%	Rural areas only; income limits apply
Jumbo	700+	10-20%	Loan amounts over $726,200 (2024 limit)

Credit score impact on mortgage terms:

• 760+ (Excellent): Best rates, lowest fees, most loan options
• 700-759 (Good): Competitive rates, standard fees
• 660-699 (Fair): Higher rates, may require compensating factors
• 620-659 (Poor): Limited options, higher rates and fees
• Below 620: Very limited options; FHA may be only choice

Pro Tips for Borderline Scores:

1. Pay down credit card balances below 30% of limits
2. Avoid opening new credit accounts 6+ months before applying
3. Dispute any credit report errors (1 in 5 reports contain errors)
4. Become an authorized user on a family member’s old account
5. Consider a manual underwrite if you have strong compensating factors (large down payment, substantial reserves)

Remember that credit score is just one factor. Lenders also consider your debt-to-income ratio, employment history, down payment amount, and the property itself when making approval decisions.

Can I get prequalified with bad credit?

Yes, you can get prequalified with bad credit (typically considered below 620), but your options will be limited and terms less favorable. Here’s what to expect:

Loan Options for Bad Credit (580-619):

• FHA Loans: Minimum 580 score with 3.5% down, or 500-579 with 10% down. Requires mortgage insurance for the life of the loan.
• VA Loans: No official minimum, but most lenders require 620+. 0% down for eligible veterans/military.
• USDA Loans: 640 minimum for rural properties. 0% down payment.
• Subprime Loans: Some specialty lenders offer loans to borrowers with scores as low as 500, but with very high rates (8-12%) and fees.
• Portfolio Loans: Some banks and credit unions keep loans in-house with flexible guidelines.

Challenges with Bad Credit:

• Higher interest rates (could be 1-2% higher than prime rates)
• Higher mortgage insurance premiums (up to 2.25% annually for FHA with low scores)
• Lower debt-to-income ratio limits (often 40% max vs 43-50% for good credit)
• Stricter documentation requirements
• Limited property options (some condos or investment properties may not qualify)

Strategies to Improve Approval Odds:

1. Save for a larger down payment (10-20% can offset credit risks)
2. Show 6-12 months of on-time rental payments
3. Get a co-signer with strong credit
4. Provide explanations for past credit issues (medical bills, job loss, etc.)
5. Shop with multiple lenders – some specialize in credit-challenged borrowers
6. Consider a manual underwrite (some lenders review full financial picture beyond just score)
7. Look for state/local first-time homebuyer programs with more flexible requirements

Credit Repair Timeline: If possible, spend 6-12 months improving your credit before applying:

• 30 days: Pay down credit card balances
• 60 days: Dispute credit report errors
• 90 days: Establish new positive payment history
• 6 months: Significant score improvement possible (50-100+ points)

Example Impact: Improving from 580 to 640 could:

• Reduce your interest rate by 1-1.5%
• Save $100-$300/month on a $250,000 loan
• Save $30,000-$100,000 in interest over the loan term
• Qualify you for conventional loans with better terms
• Allow you to avoid or reduce mortgage insurance

How long does mortgage prequalification last?

Mortgage prequalification doesn’t have a formal expiration date since it’s based on self-reported information that can change. However, there are several factors that determine how long you should rely on a prequalification:

When to Update Your Prequalification:

• Financial Changes: If your income, debts, or credit score change significantly
• Market Changes: If interest rates move by 0.5% or more
• Time Passed: Most experts recommend updating every 3-6 months if you’re actively house hunting
• New Goals: If you’re considering a different price range or loan type
• Credit Events: After paying off large debts or opening new credit accounts

Prequalification vs Pre-Approval Validity:

Factor	Prequalification	Pre-Approval
Formal Expiration	None (informal)	Typically 60-90 days
Credit Pull Validity	N/A (soft pull)	30-120 days (varies by lender)
Income Verification	Not verified (can change anytime)	Verified at time of approval (update if job changes)
Rate Lock Period	N/A	Typically 30-60 days (can sometimes extend)
When to Update	When financial situation changes or after 3-6 months	Before making an offer if pre-approval is >60 days old

What Can Invalidate Your Prequalification:

1. Taking on new debt (car loan, credit cards, personal loans)
2. Missing payments on existing accounts
3. Changing jobs or becoming self-employed
4. Significant changes in income (bonus loss, reduced hours)
5. Large withdrawals from bank accounts (could affect down payment funds)
6. Co-signer’s financial situation changes
7. Interest rates rise significantly

Pro Tips for Maintaining Prequalification:

• Keep all credit accounts in good standing
• Avoid large purchases (furniture, appliances) until after closing
• Don’t open or close any credit accounts
• Keep your employment stable
• Document any large deposits into your bank accounts
• Monitor your credit score monthly
• Re-run the prequalification calculator if your situation changes

Remember that prequalification is just the first step. When you find a home you want to purchase, you’ll need to get formally pre-approved (if you haven’t already) and then go through the full underwriting process for final loan approval.