HigherMortgage_042617In most cases, mortgage loan originators look into your past, present, and likely future to determine if you qualify for a home mortgage. They look at your payment history, your credit score (which takes years to develop), your income for the year, and more.

Many of these factors are difficult to change by the time you apply for a home loan. In some cases, you may need a higher mortgage loan amount than you currently qualify for, and that may mean that you have to integrate some creative strategies in order to successfully obtain the mortgage you need.

Quick Tips for Improving Your Loan Amount
First, always remember that you should never take on more of a mortgage than you can afford. In many ways, lenders limiting how much you can borrow is for your protection, not just theirs.

The higher your monthly payments, the harder it will be to make all of your mortgage payments on time, and that puts both your home and your credit at risk.

However, there are circumstances when you simply cannot qualify for the mortgage loan you need, even though financially you should be able to make those monthly payments. If that is the case, consider the following tips that can quickly increase your total mortgage amount.

  • Pay Off Your Higher Monthly Payment First – Lenders look at how much you pay each month to debt before determining your loan amount. Although your credit card debt may have the highest interest rate, it’s often other loans, like car loans, that take a bigger chunk of money each month. It may help to pay off those loans first.

  • Eliminate Any Cosigner Debt – If you are a cosigner on someone else’s loan, see if you can take your name off. Loans you cosigned for become your own debt, which in turn affects how easy it is for you to get a home loan yourself in the future.

  • Get a Cosigner – Similarly, if you have someone in your life that is financially comfortable, and able to lend their name as a cosigner, you may want to ask them. Those with high incomes, good credit, and a low debt to income ratio make great cosigners, who can sometimes help you qualify for a higher home loan.

  • Get Creative – Talk to your Open Mortgage Loan Originator about creative ways you can improve how your financial situation looks on paper. For example, if you have a lot of debt, but it is in your spouse’s name, see if there is a way to qualify for a home loan by yourself, rather than as a couple. If you have a business, try to make sure all business debt is on the business credit card, which is excluded from your credit report.

The mortgage loan you qualify for is usually based on a fairly accurate representation of your financial situation, so be careful about trying to get a loan that is more than you can realistically pay each month.

However, for those that can pay off a higher mortgage loan and simply need help qualifying, the above tips can improve your ability to get the amount you need. For more information, contact me today!

 

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