Not Happy with Your Pre-approval Amount? How to increase it!

If you received your pre-approval and you would like it to be more there are ways to help increase it.

1. Pay Down Existing Debt

This is the fastest win.

Credit cards
Lines of credit
Car loans

👉 Lenders often use ~3% of balances for payments
Lower balances = lower monthly obligations = higher approval

📈 2. Increase Your Income (on Paper)

It’s not just what you make… it’s what can be used:

Add a co-borrower – we can use their income to help qualify
Include bonuses, overtime (if consistent)
Use child tax (depending on lender/age of kids)

👉 More usable income = more borrowing power

🏡 3. Use Rental Income

Game changer.

Buying a home with a suite
Owning rental property

👉 Some lenders can use 50%–100% of rental income

This can significantly boost your approval

💰 4. Increase Your Down Payment

More down payment can:

Reduce monthly payments
Improve your ratios

👉 Even an extra $5K–$10K can make a difference

🧠 5. Improve Your Credit Score

Aim for 680+

Pay everything on time
Keep credit usage low
Avoid new inquiries

👉 Better credit = more lender options + better approvals

If you do not monitor your credit I suggest downloading the app Borrowell

🔄 6. Choose the Right Lender

Not all lenders view deals the same.

Some allow higher ratios
Some use more rental income
Some are flexible with income types

👉 This is where using a broker matters

🏗️ 7. Consider Purchase Plus Improvements
Add value to a property
Use future value to qualify

👉 Can open doors on homes you otherwise wouldn’t qualify for

💼 8. Avoid Major Changes During the Process

Before buying:

Don’t switch jobs
Don’t take on new debt

👉 Stability helps maximize approval

Prices on homes are higher than usual. I always tell clients if you buy a home it might not be your dream home but can become your dream home with time. If you buy a home that has a rental component and you live in another you can take that time to save 5% down again. If you keep your current home and rent both components we can use the rental income to qualify for your next home while purchasing it for 5% down. This might help make buying the dream home a reality while helping you increase your income.