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You might think that getting preapproved for a mortgage is the golden ticket to buying a home. After all, a preapproval shows sellers you’re serious, gives you a price range to shop in, and can speed up the closing process. But while preapproval is a valuable first step, it doesn’t tell the whole story — and it certainly doesn’t lock in your loan or your rate.

In today’s market, where interest rates hover around 6% to 7% and monthly payments for the typical home have climbed past $2,000, relying solely on preapproval can lead to surprises down the road.

Let’s dive into why a mortgage preapproval isn’t enough, what really affects how much you’ll be approved for, and how you can strengthen your financial position so your preapproval amount holds up when it counts.

Factors that affect your preapproval

When lenders decide how much they’ll preapprove you for, they dig into several parts of your financial picture. Some things are totally in your control; others less so. Here are the key factors:

Income and employment stability. Lenders want to see consistent income — pay stubs, tax returns, employment history — because that shows you’ll be able to make monthly payments. Changes like switching jobs, dropping hours, or moving into commission-only work can make lenders nervous.
Credit score and credit history. Your credit score, and what’s on your report (late payments, collections, existing debt), play a huge role. The higher your score, the better rates and preapproval amounts you’ll likely be offered.
Debt-to-income ratio (DTI). This is a comparison of how much you pay in monthly debts vs. how much you bring in. Lenders generally prefer a back-end DTI (including all debts) under 36%, though some programs allow higher if you have compensating factors. A high DTI limits how much mortgage payment you can afford.
Down payment / available cash reserves. More cash up front helps. If you can put down a larger percentage and still have reserves for closing costs, potential repairs, or emergencies, lenders will view you more favorably.
Loan type and terms. The kind of loan (conventional, FHA, VA, etc.), the term (30 years, 15 years), whether the rate is fixed or adjustable — all of these affect how much you can borrow. For example, longer terms or adjustable rates sometimes offer more flexibility, but can come with higher risk and stricter underwriting.
Property type and location. The kind of home (single-family, condo, manufactured), its condition, local market values, and even whether it’s in a high-risk area (flood zone, etc.) make a difference. Lenders look closely at the home because it’s the collateral.
Interest rates and market conditions. When rates rise, your monthly payment for a given loan amount gets higher, which reduces how much you can afford. Also, economic or regulatory tightening can lead lenders to require more documentation or higher reserves.

How to increase your mortgage preapproval amount

You know that getting a strong pre-approval can make you a more competitive homebuyer. But how exactly do you do it? If you want the amount you’re preapproved for to be as strong — and high — as possible, here are things you can do.

Improve your credit score

Pay down balances, make all payments on time, avoid opening lots of new accounts in the months before applying. Address any errors in your credit report.

Lower your debt-to-income ratio

Pay off or reduce debts where possible. Avoid taking on new loans. If you can increase income (raises, side gigs), that helps too.

Save more for a bigger down payment

More down payment means less loan amount, which lowers risk for the lender. It often translates into a better rate or better terms.

Stabilize your income

If you have variable income, try to show a consistent history. Holding steady at a job and avoiding risky changes before applying is helpful.

Lock in favorable loan terms

If you can qualify for a lower rate or shorter term, that tends to reduce monthly payment burden and might increase how much you can borrow given your financial profile.

Keep good documentation ready

Organized tax returns, pay stubs, bank statements, proof of additional income, and record of reserves — having these ready helps the process go smoothly and may help increase what lenders are willing to offer.

Avoid big financial changes during the process

Once you’re applying or nearing preapproval, avoid making large purchases, taking on new debt, changing jobs, or doing anything that might change your credit score or income significantly.

Compare lenders

Different lenders use different criteria, rates, and underwriting policies. This way, even if one lender’s mortgage preapproval isn’t enough, you have several quotes to show what’s possible and allow you to choose the best option.

Ask multiple lenders about their pre-approval processes. What financial information do they ask for and verify? Is the pre-approval decided by a loan officer, an underwriter, or an algorithm?

Having an underwriter looking at your application is ideal, because they are specially trained to vet your financials, reducing the likelihood of a scenario wherein mortgage preapproval isn’t enough.

Meanwhile, an algorithm or a loan officer will be limited in their ability to assess your entire financial picture. Learn as much as you can about your lender options and how they handle pre-approvals.

Choose a lender who fully checks your financials upfront

When choosing a lender, go with one that thoroughly checks out your financials before issuing a pre-approval.

Think of it this way: would you rather learn about the risks in your portfolio and fix them before you start shopping for a house, or after you’ve fallen in love with a home and are trying to make an offer with a mortgage preapproval that isn’t enough?

If you’ve ever had the soul-crushing experience of getting denied the home of your dreams, you’d probably pick the former. That’s as good a reason as any to think carefully about the type of pre-approval letter you’d like to have in your hand while home shopping.

The more thoroughly your financials are vetted, the more certainty you’ll have while buying. Choose a lender who will take the time at the outset to really dive into your portfolio and make an informed decision about your pre-approval.

Be meticulous during lending

During the mortgage process, you want to make sure to keep your finances steady.

This is not a good time to take on additional debt, miss a payment, make a big purchase, or drain your bank account. Any of these could be huge red flags for your lender.

Buying a home is a stressful period in your life, and things can — and will — fall through the cracks. But make sure you don’t do anything to jeopardize the finalization of your home loan.

Keep up with your payments and hold off on any big financial decisions or purchases until you’ve got your mortgage squared away and you’re in the home of your dreams.

Mortgage Preapproval Isnt Enough: How to Increase Your Preapproval Amount

Save thousands when buying a home

Factors that affect your preapproval