How Can I Improve My Home Affordability Calculator Results?

If you plan on buying your first home, reviewing your finances and knowing what you can afford to borrow for a home loan is a major step in the home-buying process. This is compulsory for all potential home buyers, but borrowers not knowing how to review their finances effectively is typical. Fortunately, you can use our free home affordability calculator to estimate how much house you can afford.

However, if the results are unfavorable, there are several steps you can take to improve your house affordability with time & due diligence.

Increase Your Credit Score

In general, the higher your FICO score is, the better mortgage rates you’ll get, so taking steps to boost your credit score is crucial. To start your journey on increasing your FICO score, you can start by checking your credit report and fixing its mistakes; then, you should work on paying down debt and paying your bills on time.

Increase Your Income

Increasing your income is another fantastic way to improve your borrowing capacity. Plus, a huge increase in your income instantly significantly impacts your debt-to-income ratio. You can increase your revenue by renting a spare room or doing extra shifts. You can also try to negotiate a pay raise with your employer.

Go Big with Your Down Payment

Making a huge down payment accomplishes two things. First, it decreases your loan-to-value ratio, which boosts your chances of qualifying for the mortgage you want. Second, a larger down payment plus a low loan-to-value ratio gives you access to smaller monthly payments, better terms, and less interest on the loan.

Save More 

Saving up cash for a home deposit can boost your borrowing capacity because lenders want a consistent saving record for their potential clients. It shows lenders you’re capable of making regular mortgage repayments. In addition to that, having a larger deposit decreases both the interest paid and monthly payments.

Cut Your Expenses

Besides your income, your lender will also consider expenses like school fees, rent, etc. Reducing costs will greatly help you save up for a deposit and increase your borrowing power. Most borrowers tend to focus on paying off their loan above all else. Still, the main idea is to re-evaluate your expensive internet plan, electricity bills, etc., which can burn a hole in your pocket.

Let’s talk. 

Following the steps above will increase your chances of qualifying for a home loan. It might take time & discipline, but starting the process now will help you become a home owner sooner than later.

If you want to start your home-buying journey, you can start by estimating your monthly payments by using a mortgage calculator from Nuline Funding.


* Specific loan program availability and requirements may vary. Please get in touch with the mortgage advisor for more information.