Home Loans In Greensboro, North Carolina

Greensboro is the third-most populous city in the state of North Carolina. The city is an exciting hub of diverse neighborhoods with tons of activities for the whole family. Like many other cities across the United States, the Greensboro housing market has been marked with ups and downs caused by the pandemic, but the prospects remain strong. 

If you’re buying a home in Greensboro, NC, now’s the time to start looking into your financing options. You’ll need to establish your eligibility for a mortgage, which is essential for a smooth home loan application process. Here’s what you need to know.

Greensboro, NC Home Loans Requirements

Many lenders have specific requirements depending on the amount to be financed and the type of home loan program. However, all of them generally agree that you must be able to meet these four requirements before they can process your application. 

• Ability To Repay The Loan

Can you afford the mortgage payments? That’s the first thing lenders want to know. Home financing costs typically run into hundreds of thousands of dollars, so lenders need the assurance that you will be able to pay it back based on the mortgage agreement terms. 

To that end, you’ll need to present relevant documents demonstrating your ability to repay the loan when submitting your application. These include payslips, tax statements, bank statements, asset statements, credit history, and monthly expenses. 

• Debt-To-Income Ratio

For many people, taking on debt is simply unavoidable. Credit card debt, auto loans, student loans, and personal loans all contribute to your debt profile. Lenders want to know that you can still comfortably cover your monthly mortgage payments even with your current debt obligations. 

Most lenders will ask to see your debt-to-income (DTI) ratio. This tells them how much of your monthly income is being spent on servicing your debt. 

• Credit Score

A credit score is a three-digit number computed based on your credit history. The higher the credit score, the higher your reliability as a borrower. 

Most Greensboro mortgage lenders require a minimum FICO credit score of 620. Some lenders may be willing to accept a lower score, but this usually means paying higher premiums on your mortgage. 

• Assets & Source Of Funds To Close 

The down payment is a percentage of the total cost of the house you want to purchase. Many home loan programs require between 3% to 5% down payment. There are also loan programs like the VA and USDA loans that don’t need a down payment. 

That being said, it’s always a good idea to secure a decent down payment before filing your loan application, even if the program requirement is 0%. Ideally, you should aim for a down payment of at least 20%. This will reduce the amount for your monthly mortgage payments and help you avoid paying private mortgage insurance (PMI). 

Greensboro, NC Mortgage Lender

Partner with Capital Home Mortgage to find the right home loan in Greensboro, NC. We are a full-service mortgage lender offering an array of accessible home loan programs, including FHA loans, VA loans, USDA loans, Conventional loans, Native American Home loans, and more. 

Because we’re also a direct lender, we can provide flexible underwriting, competitive rates, and on-time proper approvals for your loan application. We pride ourselves on providing excellent customer service from start to finish so that you can enjoy a stress-free homebuying experience. 

Apply For A Home Loan In Greensboro Today!

Let us help you achieve your goal of becoming a proud Greensboro homeowner today. Get started by calling (910) 500-6017. Our experienced loan officers are happy to walk you through our home loan requirements and answer any questions that you may have about the application process. 

Thank you again for your interest in our services and we look forward to providing you next home loan.