Fill out the form below in order to get pre-qualified. You will be able to know how much you qualify for, or if you do not automatically pre-qualify, you will be given advice on what you can do to get qualified for the amount you are looking to borrow (increase your credit score, apply for special loan programs, etc.).
The first step in the mortgage process is pre-qualifying, which will determine how much a lender will lend you. Most lenders use national guidelines to determine the maximum amount that they will lend. Within the context of these standards, some lenders choose to be lenient and flexible, while others are strict. To pre-qualify you, lenders look at the following information:
The credit score many lenders use is the FICO score. FICO scores range from 400 to 900, with 900 being the best score. The higher the score, the less likely there will be a default on a mortgage. Therefore, the better the score, the easier it is to pre qualify. These scores are viewed as very accurate predictors of future delinquencies.
The size of the mortgage that can be afforded monthly, can estimated through two essential ratios: housing ratio and debt ratio. Housing ratio is determined by your total monthly mortgage payment divided by your total monthly income. Debt ratio is determined by the sum of your total monthly mortgage payment and other fixed monthly debt payments divided by your total monthly income. If these ratios are too high, lenders may decide to deny the application. For pre qualification purposes, the maximum housing ratio of 28% and a maximum debt ratio of 36% (28/36) used to be national guidelines. However, today, you can get by with much higher percentages, if you can show that you can make the payment.
Some lenders evaluating a credit application are not tied down by strict industry standards. They will look at your loan request and see if it makes sense. If further explanations of any situation that will make your application look better, then by all means do so. Document all claims and explanations in writing if possible.
If you would like to get additional information about pre qualifying for a loan or see how much you can pre qualify for, fill out the
Stability helps, 2+ years in same line of work - income fixed or increasing
Cancel cards you are not using.
Clear any bad credit
Make sure it is accurate
Not too many requests for credit
Check your own credit before hand
28% of gross income or 36% of all Recurring Expenses is a general rule, but your Loan Officer can usually help you qualify for higher ratios
Shorter lock periods will lower interest rate, but lock periods of 30-45 days are highly recommended