Getting a mortgage preapproval is one of the first steps in the home-buying process. It gives you a clear idea of how much a lender might offer based on your current finances. But what if that number isn't enough to buy the home you're aiming for? That can be frustrating, especially in areas where prices are high. Fortunately, your preapproval amount isn't fixed. You can often raise it by making adjustments to your financial profile. From managing debt to improving credit, here’s a practical look at how to increase your mortgage preapproval amount.

Understand What Affects Preapproval

Lenders consider several factors when determining how much they're willing to lend. These include your income, existing debts, credit history, employment stability, and how much you plan to put down. One of the most important factors is your debt-to-income (DTI) ratio. This compares your total monthly debt payments to your gross monthly income.

If your DTI is high, your ability to take on a new mortgage appears riskier. A lower DTI makes you more favorable in the eyes of lenders. Credit score plays a part, too — higher scores often give access to better terms and more flexibility. Before making any changes, review your financial situation carefully. Understand your income, current debt obligations, and credit status.

Simple Ways to Increase Your Mortgage Preapproval Limit

Reduce Your Existing Debt

Outstanding debt directly affects your DTI ratio. If you're carrying multiple loans or credit cards, the monthly payments can eat into how much you can afford for a mortgage. Reducing these debts — even slightly — can give you more room to work with.

Start with accounts that have high monthly payments, like car loans or high-interest credit cards. Even small reductions in balances can lower your monthly obligations. If possible, avoid taking on new debts while you're preparing to apply for a mortgage. Less monthly debt means more borrowing power, and it also signals stronger financial habits to lenders.

Increase Your Income

Income is the other half of the DTI ratio. If you can raise your earnings, you increase your chances of qualifying for a higher loan amount. This might mean taking on freelance work, clocking more hours, or negotiating a raise.

If you share the mortgage with another borrower, combining incomes can improve your total qualifying amount — provided both applicants meet lending standards. Some lenders will also consider consistent overtime, bonuses, or secondary jobs if you’ve had them for a while. Stability is key, so anything new may not count immediately, but it still helps to build a stronger financial picture.

Improve Your Credit Score

A better credit score can help increase your mortgage options, which may also raise your preapproval amount. While your credit score doesn’t directly change your income or debt, it does affect how lenders view your reliability as a borrower.

To raise your score, pay bills on time, avoid late payments, and work to reduce any revolving debt. Don’t close old credit accounts suddenly — the length of your credit history matters too. Check your credit reports for errors and dispute anything inaccurate. Over time, these steps can give your credit score a noticeable boost, which might open up more loan choices or better terms.

Increase Your Down Payment

Putting more money down up front lowers the amount you need to borrow, which can lead to a higher preapproval. It also improves your loan-to-value (LTV) ratio — the percentage of the home's price you're financing. Lenders prefer lower LTVs because they carry less risk.

If you're able to save more before buying, or if you’re receiving financial help from family, increasing your down payment could help you qualify for a higher purchase price. This could also reduce or eliminate private mortgage insurance (PMI), which lowers your monthly payment and makes your finances look stronger to lenders.

Add a Co-Borrower

Another way to increase your mortgage preapproval amount is to apply with a co-borrower. This is often a spouse or partner, but can be anyone with a stable income and good credit. When lenders consider both applicants’ financial information, the total household income may support a higher loan amount.

Keep in mind, the co-borrower’s debts will also be factored in. If they have a solid credit profile and minimal obligations, this move can be a strong way to raise your buying power. Just remember that both parties will be equally responsible for the mortgage payments and the loan.

Choose a Different Loan Program

Different loan types come with different lending rules. FHA loans, for example, typically allow for higher DTI ratios than conventional loans. If you're a veteran, VA loans offer flexible options and may allow for a larger loan amount without a big down payment. USDA loans are another option in certain areas, offering benefits like zero-down financing.

By choosing a loan program that fits your financial situation, you might qualify for more than you would with a standard conventional mortgage. Talk with your lender about the available programs, and ask which might allow a higher preapproval based on your profile.

Limit Large Financial Changes During the Process

Once you’re preparing for preapproval or have already been preapproved, keep your financial activity steady. Don’t open new credit cards, make big purchases, or change jobs unless necessary. Even if your intent is positive, these changes can affect your credit score or income verification, which may reduce your approved amount.

Lenders like to see stability. Consistency in income, employment, and spending habits builds confidence and increases your chances of qualifying for more. Save major financial moves for after the mortgage closes, not during the approval phase.

Conclusion

A mortgage preapproval sets the stage for your home search, but it doesn't have to define your limits. With the right strategies — reducing debt, improving credit, increasing income, or even changing loan types — you can raise your preapproval amount. It takes effort and planning, but the results can help you access more choices in the housing market. Just make sure your focus stays on what you can afford, not just what you qualify for. A higher preapproval amount is useful, but the right mortgage fits your budget for the long run.