A pre-approved mortgage is a 'conditional'
approval of your mortgage request. Your pre-approval mortgage should be a written contract
signed by the lending institution, describing the amount of the loan and the rate of
interest you will be charged. In a volatile interest market, it is great to have a
guaranteed rate. If the rates go up, you are guaranteed the rate on your pre-approval.
If the rates go down you receive the lowest rate at closing. Most banks will guarantee
rates for 60 - 120 days.