What is the Loan Prequalification Guide?

The Loan Prequalification Guide helps clients understand the mortgage prequalification process. Educate buyers on required documents, credit requirements, and what to expect.

What documents do buyers need for prequalification?

Buyers typically need pay stubs, W-2s or tax returns, bank statements, ID, and employment verification. The guide provides a complete checklist.

What's the difference between prequalification and preapproval?

Prequalification is an estimate based on self-reported information. Preapproval involves verification of income, assets, and credit for a more accurate loan amount.

How can I use this guide with clients?

Share the guide with potential buyers early in the process. It helps them prepare for lender conversations and shows your expertise in guiding the homebuying journey.

Free Tool

Loan Pre-Qualification

Quickly assess how much home a buyer can afford based on their income, debts, and credit profile. Use this to set realistic expectations before house hunting.

Financial Information

Enter income and debt details

Annual Gross Income

Monthly Debt Payments

Include car loans, credit cards, student loans, etc.

Available Down Payment

Credit Score

Expected Rate (%)

Pre-Qualification Results

Estimated borrowing capacity

Likely to Qualify

Estimated Max Home Price

Max Loan Amount$0

Max Monthly Payment$0

Front-End Ratio (DTI)0.0% / 28%

Back-End Ratio (DTI)0.0% / 36%

Credit RatingGood

This is an estimate. Actual pre-approval depends on credit history, employment verification, and lender requirements.

How It Works

1. Enter Financial Details

Input annual income, monthly debts, available down payment, credit score, and expected interest rate.

2. Review DTI Ratios

See front-end and back-end debt-to-income ratios compared to standard lending guidelines.

3. Get Your Estimate

Receive an estimated max home price, loan amount, and monthly payment to guide your home search.

Frequently Asked Questions

Free Loan Prequalification Calculator for Real Estate Agents

Help your buyers understand their purchasing power before they start house hunting. Our free loan prequalification calculator estimates max home price, loan amount, and monthly payment based on income, debts, and credit profile. Use it during buyer consultations to set realistic expectations.

Understanding the Numbers

Lenders use debt-to-income (DTI) ratios to determine how much buyers can afford. The front-end ratio looks at housing costs relative to income, while the back-end ratio considers all monthly debt obligations. Our calculator shows both ratios compared to standard lending guidelines.

Help Buyers Get Started Right

Many first-time buyers are surprised by what they can or cannot afford. By running numbers early in the process, you help clients target appropriate properties and avoid disappointment. This builds trust and positions you as a knowledgeable resource.

From Prequalification to Preapproval

While this calculator provides estimates, encourage serious buyers to get preapproved by a lender. A preapproval letter shows sellers the buyer is qualified and makes offers more competitive. Our calculator is the first step in that journey.