Prescoring means a preliminary assessment of a client to determine whether the bank can grant him a loan. Everyone who has applied for a loan has probably encountered it, and it is also true in the case of a mortgage.
Where did the prescoring come from?
The word prescoring consists of two parts. Pre (before) and scoring. During this process, the bank estimates whether or not you will qualify for a loan, or under what conditions. So we can simply say that it is a preliminary assessment of the client.
How does prescoring work?
The basis of prescoring is an overview of the income and expenses of the potential future client, the purpose of the mortgage loan and its amount. The bank looks at the debtors’ registers, where it sees all the loans you have ever had, gets to know your payment record and assesses whether you are able to repay the loan. If necessary, it will also carry out a mortgage estimate.
The result is negative prescoring, where the bank rejects the application, or positive prescoring, where the bank may request additional documents from you. Once you have submitted these, it moves on to scoring.
Did you know that a negative entry in one of the registers does not automatically mean a negative prescoring result?