Prequalify for a home loan in the Charlotte area
Unless you plan to purchase a home with cash, you will need to have a lender prequalify you for a loan amount (or purchase price amount). We make it easy, fast and FREE for you to find out if you prequalify for a mortgage. By calling us today or completing the form below, we can put you in touch with some of Charlotte’s finest lenders and have an answer for you within 24 hours of your original inquiry. Only a lender can tell you whether your credit score, income vs. debt ratios and credit history is sufficient to qualify for a loan. Many people assume that they can’t qualify for a loan. In reality, many people do qualify or could qualify in the near future for a loan with some light to moderate credit repairs. The best way for you to know for sure if you prequalify is to speak with a lender. Don’t rely on free online consumer credit reports to find out what your score is…it will always be different than the credit report a lender would pull on your behalf. The lenders we work with are friendly and helpful. They can analyze your credit report and tell you what needs to be done if you need credit repairs so that you can qualify for a loan in the near future.
Lending guidelines to prequalify for a home loan
- No bankruptcy (Chapter 13 is OK), no foreclosure, and no car repossession (voluntary or involuntary) in the last 2 years.
- No eviction in the last 2 years.
- No late payment(s) on revolving accounts (car payment, credit card payment, student loan, child support) in the last 12 months. Some exceptions apply based on credit score. Contact us for details.
- No tax lien or judgment on credit report. Judgments and liens need to be paid off (satisfied) before you can prequalify for a home loan. Tax liens are acceptable only if an arrangement has been in place for the last 15 months to repay the liens.
- If you are a 1099 employee or self-employed, at least 2 years of tax returns are required.
- If you are a W-7 employee, a 5% down payment will be required.
- Yearly gross household income must be at least $30,000 per year (documented income).
- Household income includes your wage/salary, second job (if any), spouse’s wage/salary, court-ordered child support, disability, social security, and retirement income.
- Credit score (FICO) must be at least 620 using an FHA loan with no downpayment assistance or at least 640 if you want to use a down payment assistance program. Eligibility for those programs is determined on a case-by-case basis. We can also help you with light credit repairs to raise your credit score.
Required documents to prequalify
- W2 forms, or business tax return forms if you’re self-employed, for the last two or three years for every person signing the loan.
- Copies of at least one pay stub for each person signing the loan.
- Account numbers of all your credit cards and the amounts for any out-standing balances.
- Copies of two to four months of bank or credit union statements for both checking and savings accounts.
- Lender, loan number, and amount owed on other installment loans, such as student loans and car loans.
- Addresses where you have lived for the last five to seven years, with names of landlords if appropriate.
- Copies of brokerage account statements for two to four months, as well as a list of any other major assets of value, such as a boat, RV, or stocks or bonds not held in a brokerage account.
- Copies of your most recent 401(k) or other retirement account statements.
- Documentation to verify additional income, such as child support or a pension.
- Copies of personal tax forms for the last two to three years.