When considering your application for a mortgage many things are considered such as your income, assets, other debts, and your credit history. Each program has very specific criteria that must be met in order to qualify for the loan. Though you may feel confident that you could fit a certain monthly payment into your budget there are several reasons why you may only qualify for a lower loan amount.
A few of these reasons could include:
- Some of your income can’t be taken into consideration. For some types of income such as rental income from an investment property, commission, bonus income, or pay from work when you’re self employed you must be able to show that you have been receiving it for a certain period of time (for example, for two years) before it can be considered by many mortgage programs.