1. Pre-qualification acts as a dry run for the loan application process. The mortgage lender will use details you provide about your credit, income, assets and debts to arrive at an estimate of how much mortgage you can afford. The whole process may take only a few minutes to an hour. 

2. While a "pre-qual" is non-binding to the lender (because this information you procide has not been verified), it does serve as a good indication to potential sellers of your general credit worthiness.

3. These days most sellers will NOT accept an offer without at least a pre-approval letter, so if you are serious about buying a home, this is the first step towards getting you in your new home!