 TITLE: What Is a Preapproval Letter? CONTENT: How Does a Preapproval Letter Work?\n-----------------------------------\nIf your loan application is preapproved, the lender issues a letter that's valid for a certain window of time, such as 30, 60 or 90 days. This letter outlines the terms of the offer, including the maximum allowable purchase price, any applicable lending fees and the interest rate the lender has tentatively agreed to extend you.\nWhen you're ready to move forward with the mortgage process, the lender may ask for updated financial documents. Some also pull your credit again to see if anything has changed and may adjust the loan offer. If market conditions have changed, you may be offered a higher or lower interest rate. END