A pre-qualification letter is one of the easiest documents to obtain from a lender. The prospective buyer will set an appointment with a bank. At the appointment, the loan officer will ask simple questions about income, debt and savings. The answers to these questions will render a quote, of sorts, as to how much the buyer can afford to spend. There will be no verification of income or credit worthiness checked during this appointment. The pre-qualification letter in no way binds the bank to a loan for a home sale. On the contrary, there are actually clauses within the letter than relieve the bank from any legal obligations. It is better to have a Pre-Approval letter. I will discuss this type of letter in my next blog.