If you are looking to buy a home with a mortgage, make sure you know how much you can borrow on your home. This will help you to look out for a home, which you can afford to pay for with the loan amount that you can borrow.

How much can you borrow – 3 factors to check out for

Lenders will offer a mortgage amount based on your income and liabilities. They’d like to take a look at any income proof that you may have. However, if you are concerned about "mortgage how much can i borrow?", check out the 3 factors that lenders would consider:

1. Your Property value: Lenders arrange for an appraisal to be conducted on your property in order to determine its current value in the market. Lenders usually may offer you a loan amount worth 85% of the appraised property value. If your income is high enough, they may be willing to offer you more.



2. Your credit history: Lenders will review your credit report and check for any negative item such as charge-offs, foreclosure, bankruptcy, unpaid liens etc. If he finds that you have been through trouble paying for loans/credit cards and rent payments etc, it may affect "how much can i borrow for a mortgage?".



3. Property type: Lenders may not lend on all types of property. At times, lenders limit the amount they offer on certain property types, for instance timber-framed properties.

1. Plan a budget if you still don’t follow one and check out how much money you can save and what your expenses or liabilities are.


2. Use Mortgage how much can i borrow affordability Calculator to determine the maximum amount you can borrow.


3. Avoid overstating your income as because if you do so, you may end up getting a mortgage that you may not be able to afford later on. Also, you’ll be committing fraud for which you may face criminal charges.