Although the application process is brief, some lenders require an application fee, especially if the rate for a prequalify home loan is going to be locked in. Therefore, getting an estimate like this is a good first step because it helps the buyer target the residences he may realistically afford. Plus, a prequalify home loan demonstrates that the shopper is more serious about making a purchase and that the shopper wants an advantage when it comes to negotiating the best terms of a sale. The effort to obtain an estimate shows that the buyer has already been in contact with a lender and that the buyer submitted legitimate contact, employment, tax, and budget information, as well as allowed a lender to check his credit history.