Prequalification letter

Definition

A lender's written, non-binding read that a buyer looks financeable.

Why It Matters

Brokers ask for one before they share financials, so it is the artifact that opens doors during sourcing rather than a financing step to leave for later. It commits nobody: the number moves once the lender reads the actual deal, and it is a different thing from a commitment letter, which arrives after underwriting. Several desks turn one around in 48 to 72 hours from a personal financial statement, so get one early from a lender whose box fits your size, and refresh it when your target range changes rather than mailing a stale figure.

In numbers: A buyer with a $200k injection asks a desk quoting 48-to-72-hour prequalification for a letter supporting a $1M purchase, and walks into broker calls with it attached.