Loan Prequalification Calculator
Calculate your loan prequalification and more
When figuring out how to qualify for a home loan, it helps to determine your ability to qualify. That’s why we put together this loan prequalification calculator. So, whether you’re trying to qualify for a home loan or an auto loan, make sure you even qualify. Just bear in mind that this loan prequalification calculator is in no way a guarantee. It is, however, a good starting point in figuring out if you can get pre-approval for a home loan.
Loan prequalification calculator terminology
In addition to helping you figure out how to qualify for a home loan, we’ve broken down the terms and sections of our loan prequalification calculator. This breakdown includes the following:
- Loan amount
- Interest rate
- Loan term in years
- Annual after-tax income
- Number of income sources
- Payments for existing debt
- Credit card limit
- Number of dependents
- Real estate that will secure this loan
Calculators provided by Bankrate.com
| Loan information: Press spacebar to hide inputs |
| Debt & credit information: Press spacebar to hide inputs |
| Approval of your loan is likely According to our calculations you should have enough income to afford your payments on this loan. However, the ratio of your loan amount of NEW_LOAN_BALANCE to your real estate security value is LOAN_LTV. Loans with this ratio over 80% and but less than 95% may require the purchase of mortgage insurance to ensure qualification for this loan. press spacebar to hide graph |
Definitions
- Loan amount
- Total amount to be taken for this loan.
- Interest rate
- Annual interest rate for this loan.
- Loan term in years
- Number of years for this loan's term.
- Annual after-tax income
- Your total after-tax income for the current year from all sources of income from all borrowers on this loan.
- Number of income sources
- Number of income sources from all borrowers. The more income sources you have, the better your ability to qualify for your new loan.
- Payments for existing debt
- Total existing monthly payments remaining after the funds from this loan have been received. This total does not include the following: Any loan payments on loans paid off with proposed new loan, the new loan payment, any credit card payments.
- Credit card limit
- Your current total credit card limit. This is the total limit of your credit cards, not your outstanding balance. Include the credit cards from all borrowers on this loan.
- Number of dependents
- Total number of dependents. This number does not include the borrower.
- Real estate that will secure this loan
- Total value of the equity you have in real estate that will secure this loan. If you already have a loan secured by the same real estate you are using for this loan, make sure to only enter the equity you have in that real estate.
Figuring out how to qualify for a home loan, auto loan, etc.
The first step in researching how to qualify for a home loan – or any loan – is to take a long hard look at your finances. Exactly how big of a loan are you trying to take out and what’s an interest rate that sits right with you? Are you currently paying off any existing debt that could have an impact on your ability to qualify for this new loan? These are important questions to answer if you want to pre-qualify for a home loan, and our loan prequalification calculator is a great tool to help you get started.