If you’re looking to improve your chances of getting approved for a loan or mortgage, then you need to know how to take an AMI test. An AMI (Average Monthly Income) test is a calculation that lenders use to determine whether you can afford to make the monthly payments on a loan or mortgage. In this guide, we’ll walk you through the steps of taking an AMI test and provide you with tips on how to achieve high AMI scores.

Why Take an AMI Test?

Before we dive into the details of how to take an AMI test, let’s first understand why it’s important. Lenders use your AMI score to determine whether you can afford the monthly payments on a loan or mortgage. A high AMI score indicates that you have a good financial standing and are likely to make timely payments, which can make you a more attractive borrower to lenders.

How to Calculate Your AMI Score

To calculate your AMI score, you’ll need to add up all of your monthly income sources and divide the total by 12 to get an average.

Here are some examples of monthly income sources:

• Salary or wage from a full-time job

• Freelance income or self-employment income

• Child support payments

• Alimony payments
• Social Security benefits

Once you have your total monthly income, divide it by 12 to get your AMI score. For example, if your total monthly income is $5,000, your AMI score would be 416.67 ($5,000 divided by 12).

Tips for Improving Your AMI Score

Now that you know how to calculate your AMI score, here are some tips for improving it:

• Increase your income: The more money you earn, the higher your AMI score will be. Consider taking on a side job or negotiating a raise at your current job.
• Reduce your expenses: If you have high monthly expenses, such as rent or mortgage payments, car payments, and credit card debt, try to reduce them. This can free up more money for income and lower your AMI score.
• Avoid taking on new debt: Adding on new debt, such as a personal loan or credit card balance, can lower your AMI score by increasing your monthly expenses.

FAQs

Q: What is a good AMI score?

A: A good AMI score varies depending on the lender and type of loan or mortgage. However, generally speaking, a score of 30% to 40% is considered a good AMI score.

Q: Can I still get approved for a loan or mortgage with a low AMI score?

A: It’s possible to get approved for a loan or mortgage with a low AMI score, but it may be more difficult. Lenders will consider other factors, such as your credit history and the down payment you can make, in addition to your AMI score when making a lending decision.

Q: How long does it take to calculate my AMI score?

A: Calculating your AMI score is a quick process that can be done in just a few minutes. You’ll need to add up all of your monthly income sources and divide the total by 12 to get an average.