Are you looking to purchase the type of home lenders will say is too expensive for your financial situation? If you want to make yourself more attractive to lenders who would be willing to increase your home loan amount, there are ways to improve your credit and present your finances in a more appealing way.

What Can You Do to Get a Higher Mortgage Loan?

There are a strict set of criteria lenders use to make mortgage loan decisions. The criteria can vary based on the type of mortgage loan you are applying for, such as a first mortgage loan, a remortgage, or even a second charge mortgage against your existing home.

Whatever your situation is, there are things you can do to increase the chances of securing a larger loan. The following are ways you can make yourself look more attractive and less of a risk to lenders that will be more likely to approve a more substantial mortgage.

Assess Financial Situation Honestly

The first step in the process of determining how large a home loan you can afford is to make a comprehensive look at your finances. Only an honest assessment of your income and expenses will give the accurate information you need to figure out your price range. A mortgage calculator that takes into account all of the elements involved in applying for a home loan will show you where you stand.

2. Generate More Income

The more income you can generate, the better the risk you are to home mortgage lenders. Getting a second job or side business are obvious ways to show more income to lenders. You can also use additional sources available to you to show more income that qualifies, including:

  • Alimony or child support
  • Capital gains
  • Car allowance
  • Cash tips
  • Disability income
  • Employment contracts
  • Employment-related assets as qualifying income
  • Income from rental property
  • Interest or dividends from other investments
  • Retirement, government annuity, and pension income
  • VA benefits income
  • Money earned from a part-time job or side business
  • Pay Off Existing Debt

Your debt-to-income (DTI) ratio is a major influencer for lenders making mortgage decisions. If you are able to pay off your credit cards, car loans, or consolidate other major debts, it can improve your chances of being accepted for a larger home loan. A DTI rate of about 35 percent is generally low enough to qualify for a home loan.

4. Increase Credit Score

Raising your credit rating can also help increase the amount you can qualify for a home loan and lower the interest rate. Paying your bills on time and not maxing out existing credit lines are ways to boost your credit score. You should also avoid applying for any new credit while trying to get approved for a mortgage.

5. Make Down Payment at Least 20% of Purchase Price

If your down payment is at least 20 percent of the total purchase price, you will not be required to buy private mortgage insurance (PMI) that protects the lender from nonpayment. The cost of PMI is added to your monthly payment and will impact the size of the loan you can qualify for. Being able to put down 20 percent or more will decrease your monthly payments and your interest rate.

6. Apply for Adjustable Rate Mortgage (ARM)

There are options available that will lower the upfront costs and allow you to increase the amount you can borrow. An adjustable-rate mortgage starts out with a fixed lower rate for a specific amount of time before the rate can change and increase throughout the duration of the term. An ARM provides the opportunity to get a lower interest rate and a larger mortgage, but it comes with risks as the payments can significantly increase over time.

7. Take Advantage of Government-Guaranteed Home Loans

The federal government backs low-interest home loans that are insured by the Federal Housing Administration (FHA) and the U.S. Department of Veterans Affairs (VA). Homebuyers that qualify for FHA loans or VA loans are offered more flexible guidelines to borrow larger sums of money for home purchases.

Common Mortgage Mistakes That Prevent Higher Mortgage Loans

Avoiding some common mistakes buyers make can also serve to a larger home loan. The following are mistakes that can cost you thousands of dollars in a potential mortgage.

Failing to Get Multiple Estimates From Different Lenders

Buying a home is the biggest purchase you likely will ever make. It is in your best interest to get estimates from multiple lenders to compare and get the best possible deal. Looking at different lenders allows you the chance to compare and contrast prices, closing costs, and guidelines for PMI. Shop around with a variety of lending institution types, from mortgage brokers and credit unions to larger and online lenders. Taking the time to get multiple estimates can result in significant savings.

Waiting Too Long Before Handling Credit Issues

Your credit score is a leading indicator of the availability and size of the mortgage you can qualify for. It takes time to get the work you do to fix your credit problems today to show up on credit reports. If you wait too long before making the necessary changes, your credit rating may not improve enough in time to be eligible for a higher loan.

Switching Jobs Before Loan is Completed

Accepting a job with a new company for a higher salary can improve the chances of getting a larger mortgage. However, any change in the structure or income stream can have a negative effect on the application process. For example, switching to a commission-based salary or becoming self-employed can harm your ability to get a substantial home mortgage loan.

Omitting Requested Application Information

The mortgage application is the foundation for the process of acquiring a home loan. Lenders ask for a lot of information to determine if you can afford the mortgage payment. If you are discovered omitting requested information or misrepresenting items, your loan will be outright denied. Leaving off payments for child support or alimony, for example, can put your loan in jeopardy.

SimpleShowing Can Help You Get the Highest Possible Mortgage Loan

For complete information on the steps you can take to be approved for a higher mortgage loan, contact the real estate professionals at SimpleShowing and get started today.


Managing your financial habits and profile wisely can significantly increase your mortgage preapproval amount and help you secure a higher mortgage loan. Ensuring your monthly mortgage payment does not consume a substantial portion of your gross monthly income and that you maintain a healthy debt-to-income ratio are integral steps in this process. Consistently demonstrating your capability to handle mortgage payments and other monthly debt payments punctually will create a favorable impression on your mortgage lender.

Furthermore, keep in mind that your monthly mortgage payments are not the only consideration for lenders. They will also evaluate your overall financial stability and reliability. As you plan for your mortgage, consider strategies to increase your mortgage preapproval and anticipate possible changes in your monthly mortgage payment. By strategically managing your finances, you can present yourself as a low-risk borrower to your mortgage lender, giving them the confidence to approve a higher mortgage loan.

Navigating the world of mortgage preapprovals can be complex, but by staying informed and proactive, you can greatly increase your chances of securing a larger loan. Remember, the more you understand about your financial landscape and mortgage requirements, the better equipped you'll be to make decisions that positively impact your mortgage preapproval amount. With careful planning and the right strategies, your dream home might just be within reach.