Prequalification is going to be the first step of your homebuying journey. During the prequalification stage, a lender will collect only basic financial information in order to give you an affordability estimate. This includes an assessment of your finances, credit and current debt, but it’s not an in-depth evaluation.
However, prequalification provides no guarantee that you will be approved for a mortgage. Nor does it qualify you as a serious buyer to agents. The process gives you a rough idea of how much you’ll be able to borrow and helps narrow down your budget for a home.