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, not 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. Get one early from a lender whose box fits your size, and refresh it when your target range changes so you are not mailing a stale figure.

In numbers: A buyer with a $400k injection asks a desk quoting 48-to-72-hour prequalification for a letter supporting a $4M purchase, and walks into broker calls with it attached.