Mortgage pre-qualification

Unless you plan to purchase a home with cash, you will need to have a lender prequalify and pre-approve you for the purchase of a home. That pre-approval will show your maximum buying power given your current income and debt level. At Cornerstone Realty Carolinas, we make it easy and fast for you to find out if you qualify to purchase a home. By calling us today, we can put you in touch with Charlotte’s finest lenders and have an answer for you within a few days of your original inquiry. Only a lender can tell you whether your credit score, income vs. debt ratios and credit history are sufficient to qualify for a loan. Many people assume they won’t qualify. In reality, many people do qualify or could qualify to purchase a home 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. Below are some guidelines and documents that will be required to get you pre-approved.

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 10% down payment will be required.
  • Your household income should be sufficient to pre-approve you for the type of home your are looking for. Call us for details.
  • 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 profit and loss for two years if you are self-employed, for every person on the loan.
    • Copies of at least one pay stub for each person on the loan.
    • Account numbers of all your credit cards and the amounts for any out-standing balances.
    • Copies of two 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.