What Can Impact Your Borrowing Capacity?
Finding out how much you can borrow is one of the first steps on the road to getting a home.
Your borrowing capacity may vary between lenders because they each have specific criteria.
This is likely to be because each lender has a different way of assessing the loan amount you may qualify for.
Discovering your borrowing power will help you figure out how much you can afford to pay for a property.
Some of the factors which lenders and banks may use to determine your borrowing capacity may include credit card limits, your income, living expenses and the type of loan you choose.
One of the ways you may be able to improve your borrowing power is by increasing the amount in your savings account. To do this consider setting a budget and sticking to it.
This can help to accumulate more savings and put you in a better position to buy a home.
One of the ways to quickly assess your borrowing power is to use an online home loan calculator.
Using the How Much Can I Borrow calculator is quick and easy. You can enter your income and expenses details and within a few minutes be given an estimate of what you may be eligible to borrow.
To get more detailed information about your situation, talk to a Loan Market mortgage broker today.