When it comes to purchasing a $2 million house, the lender will consider your income and financial stability to ensure that you are able to make the payments on the loan. Here are some key points to keep in mind if you are considering purchasing a $2 million house:
Most lenders require a minimum of 20 percent down payment on a $2 million home, which comes out to $400,000
To be eligible for the loan, lenders may require you to earn at least $450,000 annually
This income requirement may include the combined income of you and your spouse
Your lender may also factor in your debt-to-income ratio to ensure that you can comfortably manage the loan payments alongside your other expenses
Keep in mind that owning a $2 million home comes with additional expenses such as property taxes, maintenance, and insurance costs, so it’s important to budget accordingly
Ultimately, the lender wants to ensure that you are financially stable enough to take on a big loan like this without putting yourself at risk of defaulting on the mortgage. By being well-informed about the income and down payment requirements and budgeting for the additional expenses associated with owning an expensive home, you can make an informed decision about whether or not a $2 million house is the right choice for you.