You might wonder how much mortgage you can be reapproved for when applying for one. The amount a lender will preapprove you for will be based on multiple factors including:
- Income: Your gross monthly income and any other income you receive.
- Credit score: Higher credit scores — 700 or above — tend to qualify for larger loan amounts and lower interest rates, even though lower scores are acceptable.
- Debt-to-income ratio: Your monthly debt payments — like car payments, student loans, and credit cards — will be compared to your gross monthly income to make up your debt-to-income ratio. Lenders typically prefer a DTI ratio of 36% or lower. Some specialized lending products — such as Federal Housing Administration loans — may accept DTI ratios of 43%.
- Down payment: Making a large down payment could help you get approved for a higher loan amount. Also, down payments of at least 20% of the home purchase price will keep you from having to pay an additional monthly mortgage fee, known as private mortgage insurance, or PMI.
- Assets and savings: Lenders may view savings accounts, retirement accounts, and other investments as extra financial cushions; these could give them more confidence in approving you for a larger mortgage amount.
- Loan type: The type of mortgage you’re applying for — such as a conventional loan, an FHA loan, or a Veterans Affairs loan — could also affect the amount a lender will approve for a mortgage. For example, buyers with lower credit scores and smaller down payments may qualify for an FHA loan, but it may come with lower loan limits, since lenders are taking on more risk.
Check out below to see what sold in Roma Ridge in October 2025:
46890 Cider Mill Drive, Novi: 4 bedrooms, 3.1 bathrooms, 3,263 sq. feet, 3 car garage, Sold Price: $705,000
Roma Ridge Home Sold
August 2025
For more information on Roma Ridge, The DiMora Team today at 248-505-7728 or jim@dimora.com.