What is prequalification?

Many mortgages brokers offer prequalification when you are applying for mortgages rate. Pre qualification is a process that yields no obligation at all on your side to take the rates which are offered during the process. You will be eligible for prequalification when you have provided some basic information regarding your financial condition. The information commonly is in form of credit report, debts, income and assets report. Of course you might have trouble applying for bad credit mortgages if you have bad credit score. Then the lender would give you a quote without actually simulate your credit. And the quotes will most of the time changes after your real credit is included. The same process would also available if you apply for secured loans.