Guide to Refinance, Mortgage,
& Home Equity Loans in
Charlotte, North Carolina (NC)

Most people agree that Charlotte, NC is a great place to live. You get the feel of the big city if you visit the downtown districts, but in less than an hour you can visit the rural countryside. The beach is nearby with fantastic views of the ocean, and many love living in the suburbs, where the costs of living of still fairly low and the job market is great. In the past few decades, real estate developers have been successfully creating many great suburbs and city neighborhoods for families and young professionals.

You too can break into the real estate world by applying for a Charlotte, NC mortgage. If you already live in the city, you can also work to make your home the best it can possibly be for your financial portfolio by learning about refinance options and home equity loans. In order to receive a first mortgage, refinance, or home equity loans, you must first qualify.

How do lenders determine if you qualify for a mortgage, refinance, or home equity loans? The basic process is called underwriting, and if you get your finances in order before you apply for a mortgage, refinance, or home equity loans in Charlotte, NC, you will have a much better chance of getting the money or service you need. Here is how your qualification is determined:

• Can you afford the amount you wish to borrow? This is the first question on any lender’s mind. Remember, a mortgage, refinance, or home equity loan is not a gift—you must pay the money back, starting the month after you borrow it. You will be asked to submit income information to prove that you have the means to do so. Usually, you must be able to show that you can set aside 33% of your income every month and that this amount is enough to cover the monthly payment.

• Are you a repeat customer? If you have worked with a lender before with no problems, your application process may be quicker than a first time applicant’s. They already know that you are not a risky person to work with. The only exception is if you are applying for a mortgage or home equity loans at a much greater value than before, but your finances have not changed. They still want to make sure that you have the income to pay for it.

• What does your credit history look like? Have you filed for bankruptcy or been involved in foreclosure in the past? These factors will decrease your chances of being approved for a mortgage, refinance, or home equity loans unless you work with specific government programs to find lenders. You could also not qualify if you are in a significant amount of debt or your credit score is low because you have not paid other loans back on time. If you have no credit history at all, you could also be denied.

• Do you have enough money for a down payment? Down payments are required in order to put equity into your home from the start. Most lenders require you to pay about 20% of the total sale price at closing, but this varies. The money must come from you, and cannot be a gift from a friend or relative. It is illegal, in most cases, for this money to come from the seller as well.

A number of other factors go into qualifying for a mortgage, refinance situation, or home equity loans as well. Special underwriters work specifically with mortgage lenders to provide this kind of information. If you are denied a loan, make sure you ask for their reasons, and work to correct this problem before you apply at another lending agency, or you are likely to have the same problems.

To learn more about qualifying for a mortgage, working to refinance your existing mortgage, or finding home equity loans in Charlotte, NC, fill out the form below. One of our helpful representatives will contact you to answer all of your mortgage questions and help you start the application process whenever you are ready.