How To Get Approved for a Higher Mortgage

1. Research location-based limits

Before submitting your application to a mortgage lender, know that approval standards vary dramatically depending on where you’re buying, what kind of property you want and whether you’re a first-time buyer or are thinking about refinancing.

If you are a first-time buyer, research state or local down payment assistance programs since many offer grants or deferred loans. If you're refinancing, compare cash-out limits and debt-to-income (DTI) requirements for your loan type.

Also, many people assume mortgage approval works the same everywhere, but lenders don’t treat a condo in Miami the same as a single-family home in rural Colorado, nor do they use the same rules for purchases, refinances or cash-out requests.

Loan limits differ by county and property type. In the U.S., the standard conforming loan limit for a single-family home in 2026 is $832,750 in most counties. But if you’re buying in a high-cost area like Hawaii, the limit goes up $1,249,125.

Anything above those numbers may require a jumbo loan, which has stricter underwriting standards. So, if you’re buying in a high-cost area, check for higher conforming limits or consider jumbo loan options.

2. Compare mortgage loan types and approval requirements

Once you understand your location and loan limits, the next step is choosing the right loan type for your situation and getting preapproved.

Here are the most common mortgage loan types and approval requirements:

3. Strengthen your finances to increase mortgage approval

After narrowing your loan options, the next step is to improve your creditworthiness so you can actually qualify for a higher mortgage amount. Lenders will typically look at your credit score, your DTI, your income and your available down payment.

“If you want to get a bigger loan, you need to focus on everything except buying a home,” said Sandra Tobon, director of housing counseling and community outreach at Consolidated Credit, a nonprofit credit counseling agency. “You need to pay all your other bills on time, and pay down your credit cards the best you can.”

Aim for a credit score of at least 700 if you want access to the best rates. You’ll also want to review your credit reports for errors, pay down revolving balances and avoid new credit accounts for several months before applying for a mortgage. Having a larger down payment may also increase your approval amount because it lowers your loan-to-value ratio and reduces lender risk.

Debt-to-income ratio is another determining factor in how much you can borrow. Your DTI is essentially all your monthly debt payments divided by your gross monthly income. FHA loans allow DTIs up to 50% in some circumstances, whereas conventional loans are stricter and usually require DTI ratios to be less than 43%. Some jumbo lenders require DTIs as low as 36%.

If your income is variable or comes from multiple sources, such as gig work, bonuses or commissions, take time to organize your documents. Lenders typically want at least one to two years of consistent records.

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4. Gather and organize mortgage application documents

Lenders need to see your complete financial picture, so you don’t want to miss documents since that could delay or derail your application. Typically, lenders want the following documents:

• Pay stubs (past 30 days)
• W-2s and/or 1099s (past two years)
• Federal tax returns (past two years)
• Bank statements
• Asset statements
• Proof of additional income
• Valid government-issued ID and Social Security card

If you’re self-employed, you may need more documentation because lenders want to see that you’re financially stable. In addition to personal tax returns, you may need business tax returns, a year-to-date profit-and-loss statement and business bank statements. If you have multiple income sources, make sure to gather supporting documents for each one.

5. Explore assistance programs and co-signer options for higher approval

If your income or credit profile isn’t ideal, you may want to look into first-time buyer programs or adding a co-signer.

First-time buyer programs vary by state and county, but many offer lower down payment requirements, flexible underwriting and grants that can increase your purchasing power. You can use Freddie Mac’s program finder to help you find first-time buyer assistance options.

Co-signers are another way to improve your odds of approval. When a co-signer with strong credit and stable income adds their name to your loan, their income is combined with yours, which helps lower your DTI and increases your maximum loan amount.

Remember, the co-signer is legally responsible for the loan and their credit can be negatively affected if you miss payments. So make sure they’re aware of that. Also, some lenders require co-signers to have higher credit scores than borrowers, so check requirements before applying.

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