Compare Mortgage Quotes

Refinance Rates for Today

Please enable JavaScript for the best experience.

In the mean time, check out our refinance rates!

Company Loan Type APR Est. Pmt.

More loan than pre-approved amount

Posted on: 19th Jan, 2014 11:51 pm
Will I be able to qualify for a mortgage over the amount that I have been pre-approved for?
Well, as far as I know, you will not be able to qualify for a mortgage amount more than the pre-approved amount.
Posted on: 20th Jan, 2014 12:44 am
You may be able to get a mortgage for more than the amount for which you were pre-approved.

A pre-approval depends upon some factors which are not known at the time of the pre-approval. For example, if you find a home that has property taxes less than the guestimated amount for the pre-approval, you may qualifiy for a higher mortgage amount.
Similarly, maybe home insurance monthly premiums may be less than guestimated.
Maybe mortgage rates dropped from the time of your pre-approval and you could qualify for more of a mortgage. Each of the above items could be higher or lower and affect the mortgage amount up or down.
However, the BIGGEST chance of a higher mortgage amount is if the lender can get you an approval at a higher debt ratio. Many lenders issue a pre-approval based on a maximum debt ratio of 43% or 45%. Higher debt ratios are available but ONLY after the automated underwritng is run and the lender gets an automated approval for a higher debt ratio, maybe up to a 50% debt ratio.
If you know you need/want a mortgage amount higher than your pre-approval, ask a lender/broker to qualify you up to a 50% debt ratio, if possible. The lender/broker will have to run the automated underwriter to make sure it is OK.
The lender/broker may or may not be able to do that. I do it all the time. Simply find a lender/broker who can do it.
The automated underwriting findings may or may not approve a debt ratio for you over 45%. It depends on a combination of factors--credit score, down payment, reserves, etc.
Posted on: 20th Jan, 2014 10:40 am
Page loaded in 0.054 seconds.