4 Ways to Boost Borrowing Power and Get a Bigger Mortgage

Almost everyone wants a big house. This is because nothing feels better than coming home from work and being welcomed by lavish amenities, massive rooms, and expansive lawns. While these demands are undeniably luxurious, they can give you a chance of living like royalty. Unfortunately, homes with these fittings come in hefty price tags that most of us can only dream of being able to afford.

Choosing this type of property may not be the most cost-effective option, which is why it requires a big mortgage. If you need more borrowing power, here are some strategies to follow: 

Boost Your Credit Score 

If you have a less-than-desirable credit score, prioritize improving it to increase your purchasing power. Doing so helps you qualify for a lower mortgage rate. 

To boost your credit score, make all payments on time, avoid maxing out your credit, and shop for more credit while applying for a home loan. Another way to improve your rating is to pay down high credit card balances. Clearing your debt decreases the amount of revolving debt you are using.

Make a Large Down Payment

When buying a home, put down at least 20 percent of the property’s price. While this may seem mandatory, some offers can waive this requirement with certain consequences. Nevertheless, you should aim to reach at least a 20 percent capital to avoid certain fees.

Since you won’t have to pay for private mortgage insurance (PMI) by paying above 20 percent, you might be able to get a bigger loan. You could also pay more upfront to buy down your interest rate if you still have money even after you make a down payment. This will not only save you thousands of dollars over time but also allow you to qualify for a higher loan amount.

Pay Off Current Debt

When applying for a mortgage, lenders assess your debt-to-income (DTI) ratio. This is the percentage of your monthly income you use to pay for your minimum monthly debt payments. In other words, these values allow mortgage lenders to assess how much money you currently owe

Note that you need a DTI ratio of 36 percent or less to increase your chances of qualifying for a larger loan. In addition, the more debt you have, the less you will be able to borrow. Because of this, it’s best to pay off your existing debt to make you more attractive to lenders.

Get a Pay Raise

During your loan application, mortgage lenders check your income when deciding how much to lend you. You have a higher chance of getting a bigger mortgage if you earn more, so consider negotiating for a salary increase.

If you cannot snag a raise or land a higher-paying job, another alternative is to use other sources of reliable income aside from salary. For instance, consider using income from rental property, alimony, or child support. Additionally, you can diversify your income portfolio with money earned from a side hustle or a part-time job, or dividends or interest from investments. 


Owning a luxurious home does not have to remain a fantasy. By doing these strategies to boost your borrowing power and attain a bigger mortgage, you gain the chance to finally afford a more expensive property. To get started in turning your dream into a reality, begin doing your research, checking for the best mortgage rates, and looking for a trustworthy mortgage lender.

Whether you need to compare mortgage interest rates without hassle or get pre-approved in no time, you can count on paloRATE to make your homebuying process a breeze. We take pride in offering home loans at competitive rates. Contact us today so you can finally purchase your ideal home!