Buying a new home can be very stressful! We would like to give you Four things you can do to qualify for a bigger mortgage.

1. Reduce long- term debt.

The first thing that Lenders look at is your income-to-expense ratio. They compare how much money you have coming in against how much money have going  out every month. We all know that a dollar will only go so far- and Lenders know this particularly well. So, if you can pay off your car loans, credit cards, or any other obligations against your income, you’ll have more money to spend on a loan and the lender will let you borrow more money.

2. Wait until you get more income.

Another way to look at the income-expense ratio is from the income side. If you have more money coming in, you can borrow more money. If you’re expecting a raise within the next year, maybe you should wait until that comes through, before asking to borrow money for a new home.

3. Add someone else to the loan.

Another way to demonstrate to a Lender that he will be repaid is by having someone (with a good income and stable job) co-sign on the loan.

4. Use financing that requires lower down payments.

The basic idea is this… the more money you have available to spend, the more money that a Lender will let you borrow. You’re trading off having the money available NOW or later. If you put a large down payment on a home now, that means you may have less income available to repay a loan later.

By the same token, if you make a smaller down payment, then you’ll have more money available to repay a loan- and the Lender is likely to let you borrow more.