Qualification (or "pre-qualification" as it is often called) is simply an opinion by a lender (or someone else) that based on information you have provided covering your income, assets, and debts, and given current market interest rates, you qualify for a loan of some specified amount. If any of the information you provide turns out to be different, or if interest rates increase, the opinion is subject to revision. Qualified borrowers may ultimately be turned down because, while they have demonstrated the capacity to repay based on their credit history, there are other conditions not yet verified such as appraisal, condition of property, title and borrower’s information on the application.