Loan Officer how-to

How to Prequalify a Homebuyer

Early review sets realistic expectations.

Updated By the Career Education Institute Curriculum Team
Quick answer

Early review sets realistic expectations. In short: ask; pull; review, then complete the remaining steps below.

Step by step

  1. Ask about goals, timeline and budget.

  2. Pull credit with permission.

  3. Review income, employment and assets.

  4. Calculate debt-to-income ratio.

  5. Explain loan options and estimated payments.

  6. Issue a preapproval when documents support it.

Safety reminders for loan officers

  • Protect borrower data and follow privacy laws
  • Follow fair lending and anti-discrimination rules
  • Watch for fraud and identity theft
  • Set work-life boundaries during busy markets

Preapproval · DTI · LTV · APR · Rate lock · Underwriting: see the full loan officer glossary.

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