Would you be disappointed if you didn't qualify for the house you tried to pre-qualify for? Maybe you have found your house buying options are fairly limited. You may have to lower your standards and realize that you have to buy a less expensive home. But all hope is not lost. There are ways to increase your borrowing power. It may take some time to do these options, but here are some ways to increase your borrowing power:
- Reduce your existing long term debt
- Wait to apply for a mortgage until your income increases
- Find a financing option that results in a lower down payment and lower monthly mortgage payments.
We have previously discussed that if your existing debt is too high in relation to your income, you can qualify for a larger home by paying off some of your debt before you apply for the mortgage. When buying a home it is not the time to go out and purchase expensive items like a car or furniture. If the problem is your income and it is limiting your borrowing capacity, you may need to try something else. You may have to wait before you can apply for a mortgage loan until your income increases or your expenses decrease.
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