If you got preapproved for a home loan that’s smaller than what you think you can afford, you might be able to get a larger mortgage. Here’s how…
Improve your credit. Check your credit reports for errors and make payments on time.
Reduce your debt-to-income ratio by paying down debts and/or increasing your income.
Include income from all allowable sources in your application. You can count child support, alimony, disability benefits and other sources.
Adding a cosigner can help you get preapproved for a larger loan, but you shouldn’t do that unless you’re sure that you’ll be able to afford the mortgage payments.
If you put down less than 20% on a conventional loan, you’ll have to get private mortgage insurance. With a larger down payment, you’ll be able to avoid PMI and have more money to put toward a mortgage.
