How Can I Get Pre-Approved For A Larger Amount?

Getting pre-approved is a key first step in buying a home. Sometimes, this amount is lower than what you expect and can put a pause on your plans. However, we may be able to increase it by showing lenders that you can afford a larger mortgage.

 

Here are some strategies to help:

𝟭. 𝗟𝗼𝘄𝗲𝗿 𝗬𝗼𝘂𝗿 𝗗𝗲𝗯𝘁

A high debt-to-income ratio can limit your mortgage approval. Paying down high-interest debts before applying can increase your borrowing power. The less you owe, the more mortgage you can qualify for.

 

𝟮. 𝗜𝗺𝗽𝗿𝗼𝘃𝗲 𝗬𝗼𝘂𝗿 𝗖𝗿𝗲𝗱𝗶𝘁 𝗦𝗰𝗼𝗿𝗲

Lenders look at your credit score and repayment history when pre-approving you for a loan. To increase your score:

- Make all payments on time

- Pay down credit card balances

- Avoid applying for new credit, including loans

- Request higher credit card limits

 

𝟯. 𝗔𝗱𝗷𝘂𝘀𝘁 𝗬𝗼𝘂𝗿 𝗠𝗼𝗿𝘁𝗴𝗮𝗴𝗲 𝗧𝗲𝗿𝗺𝘀

The type of mortgage you choose can impact how much you qualify for. With higher stress test rates, variable mortgages may lower your approval amount. A mortgage broker can help you find the best fit.

 

𝟰. 𝗠𝗮𝗸𝗲 𝗮 𝗟𝗮𝗿𝗴𝗲𝗿 𝗗𝗼𝘄𝗻 𝗣𝗮𝘆𝗺𝗲𝗻𝘁

A larger down payment lowers your loan amount, which can boost your approval. Consider:

- Using savings or investments

- Receiving a gifted down payment from family

- Exploring government programs like the First-Time Home Buyer Incentive

 

𝟱. 𝗔𝗱𝗱 𝗮 𝗖𝗼-𝗦𝗶𝗴𝗻𝗲𝗿

If a trusted family member has a strong financial profile, they can co-sign your mortgage to help you qualify for more. Keep in mind, a co-signer shares responsibility for the loan, so it’s a significant commitment, but it could help you secure your dream home.

 

𝟲. 𝗦𝗵𝗼𝘄 𝗠𝗼𝗿𝗲 𝗜𝗻𝗰𝗼𝗺𝗲

Your income affects how much you can borrow. Beyond salary, lenders may consider investment income, rental earnings, alimony, pensions, or a steady side business (with at least two years of history). More income means more borrowing power.

 

Increasing your mortgage pre-approved amount is possible with the right approach. However, before requesting a higher amount, ensure you can afford the higher payment. The more you borrow, the higher your mortgage payment will be. Getting pre-approved for a higher amount is possible; it just may take a little work and time.