|Ways to Increase Your Purchasing Power|
There are several factors that lenders take into consideration when determining how much they will lend to you for your home purchase. The three most important factors are your income, debts, and down payment. Any one of these factors can greatly impact the amount of mortgage you qualify for. As a general rule, no more than 28% of your gross monthly income should be going towards your monthly housing payment and no more than 36% of your income should be going to your housing payment plus other monthly debt. These guidelines vary by the amount of down payment you make and the loan program you choose.
• Make a lower down payment and use extra cash to pay off debt
• Income from alimony, child support, bonuses, overtime or future raises might be considered.
• Repair your credit file by contacting creditors and requesting that negative information be removed.
• Get a gift from an immediate family member.