How to Qualify for a Larger Loan Amount

House prices have been increasing dramatically across the country over the last few years. This means that home buyers may have to apply for a larger loan amount in order to buy a house that meets their needs. What are some steps that you can take to qualify for a larger home loan amount?

Pay Off Your Credit Cards
The loan amount you qualify for will be dependent on your debt-to-income ratio. By reducing your monthly debt payments, you may be able to qualify for a higher loan amount. Is your car loan almost paid off? Eliminating any type of debt can help.

Get a Side Gig
You may also qualify for a larger loan amount by increasing your income. Consider getting a part-time job to get the extra income you need to support a higher loan amount. A side benefit of earning more money is that you can reduce your debt balances more quickly.

Improve Your Credit Scores
Your credit scores directly affect the interest rate and even the loan programs that you qualify for. Paying off your debts can have a direct and positive impact on your credit scores. Likewise, making your payments on time can potentially elevate your credit scores and may make it easier for you to qualify for a mortgage.

Make a Larger Down Payment
There are several loan programs that have a low down payment option. While these programs are available, you may qualify for a higher loan amount if you can make a larger down payment. Use money from tax refunds, a side job and other sources to quickly increase your down payment fund.

Do you want to learn more about your mortgage options? Our team at MortgageDepot is eager to answer your questions and to help you walk through the prequalification process. Contact us today to explore the possibilities.

Connect with one of our loan consultants to learn more.