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Prequalification vs. Preapproval vs. DU Approval

Writer's picture: 14 Days To Close14 Days To Close

Updated: 38 minutes ago

Congratulations! You've decided to take the exciting leap into homeownership. But before you start browsing open houses and picking paint colors, it's time secure financing. Mortgage terms like prequalification, preapproval, and DU approval might sound mysterious, but they're simple (and important). We'll break them down and show you how getting preapproved can make your offer stand out and land you the house you love.



Young woman thinking thoughtfully while she looks into the sky.


Prequalification: A Quick Snapshot 💪

Think of prequalification as a rough estimate of your borrowing power. Based on information you provide (income, debts, etc.), a lender can give you a general idea of what you might qualify for. It's a fast and easy way to get a starting point, but it doesn't involve a deep dive into your finances.  There might not even be a credit check involved.


While prequalification is useful for getting a ballpark figure, it doesn’t carry much weight with sellers because it’s based on self-reported information. If you’re just beginning your home search and want to understand what’s within reach, this is a great place to start—but it won’t hold the same credibility as a preapproval or full loan approval.


Preapproval: Taking it a Step Further 💪💪

Preapproval is like the serious upgrade to prequalification. Here, the lender verifies your information through documents like pay stubs and tax returns.  They also perform a hard credit check. This gives you a more accurate picture of your borrowing power and translates into a preapproval letter. This letter is like a golden ticket for serious house hunters! It shows sellers you're a credible buyer with the financial backing to close the deal.


This letter acts as proof to sellers and real estate agents that you’re a serious buyer with the financial backing to follow through on an offer. In competitive markets, a preapproval can make the difference between getting your dream home and losing out to a better-prepared buyer. If you’re ready to move forward, securing preapproval should be a top priority.


DU Approval: The Extra Layer of Confidence 💪💪💪

A DU (Desktop Underwriter) approval is an optional step some lenders offer. It takes your preapproval a notch higher by sending your information to an automated underwriting system used by many lenders. While not a final approval, a DU approval signifies a higher likelihood of your loan being approved by the underwriter, adding an extra layer of confidence for both you and the seller.


Because DU approval involves a deeper analysis of your financials, it can make your offer stand out in competitive bidding situations. Sellers prefer buyers with fewer financing risks, and a DU approval reassures them that you’re a well-qualified borrower. If you're in a competitive market or want to strengthen your position as a buyer, asking your lender about DU approval could give you an edge.




So, Which One Do You Need?

For most homebuyers, a preapproval is the sweet spot. It provides a strong estimate of your borrowing power and strengthens your offer to sellers. However, if you're in a highly competitive market—such as Florida, Texas, or other fast-moving real estate hotspots—a DU approval can give you an extra edge. In multiple-offer situations, sellers tend to favor buyers with the least amount of financing uncertainty. A DU approval signals that your loan has been through an additional layer of underwriting review, making it more likely to be approved by the final loan underwriter. This can set you apart from other buyers who may only have a basic preapproval, potentially making your offer more attractive.


If you're still unsure which option is best for you, working with an experienced lender can help you determine the best path based on your financial situation and local market conditions. At 14 Days To Close, we help homebuyers navigate prequalification, preapproval, and DU approval to ensure they are in the strongest possible position to secure their dream home.


Infographic on mortgage qualifications: Prequalification, Preapproval, DU Approval. Text with icons and a winding road design below.

Ready to Take the Easy First Step?

At 14 Days to Close, we’re here to make the mortgage process as smooth and straightforward as possible. Our DU Approval gives you an extra edge, offering more certainty and confidence when making an offer. With thousands of five-star reviews from happy clients nationwide, we’ve built a reputation for fast, reliable service you can count on.


Whether you’re getting prequalified, preapproved, or ready for a DU Approval, we’re ready to help. Let’s get you one step closer to your new home! 💪


Apply for the strongest approval available or call us to speak with a mortgage expert today!





 


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