Income
Your income is one of the most important factors that lenders consider when determining how much you can borrow for a home loan. As an engineer, you may have a higher income than the average borrower, which can increase your borrowing capacity. Lenders will typically look at your income over the past two years, including any bonuses or commissions.
Credit Score
Your credit score is another important factor that lenders consider when determining how much you can borrow for a home loan. Your credit score is a reflection of your creditworthiness, and a higher score indicates that you are more likely to repay your debts on time. As an engineer, you may have a higher credit score due to your education and higher earning potential, which can increase your borrowing capacity.
Debt-to-Income Ratio
Your debt-to-income ratio is another important factor that lenders consider when determining how much you can borrow for a home loan. This ratio compares your monthly debt payments to your monthly income. Lenders typically prefer borrowers with a lower debt-to-income ratio, as it indicates that they have more disposable income available to make their mortgage payments.
Loan-to-Value Ratio
The loan-to-value ratio is a measure of how much you are borrowing compared to the value of the property. This ratio is important because it helps lenders assess the risk of the loan. As an engineer, you may be able to borrow a higher percentage of the property’s value due to your higher income and credit score.
