There are many benefits to using a mortgage to finance the purchase of a home. For one, mortgages usually come with lower interest rates than other types of loans, which can save you money over the life of the loan. Additionally, monthly mortgage payments can be made tax-deductible, which can further reduce your overall costs.

Another key benefit of using a mortgage is that it can help you build equity in your home. As you make payments on your mortgage, the balance of your loan will gradually decrease. At the same time, the value of your home is likely to increase, resulting in equity growth. This equity can be tapped into later if you need to make repairs or improvements to your home or if you simply want to sell and pocket the profits.

However, when you’re applying for a mortgage, there are a number of red flags that could ruin your chances of being approved. You must be aware of these red flags to increase your chances of success so that you can reap the benefits of a mortgage!

That being said, let’s talk about these red flags that you will have to address:

1. You Have Poor Credit

One of the most important factors in getting approved for a mortgage is your credit score. If your score is below 640, you’ll likely have a hard time getting approved.

2. You Have a High Debt-to-Income Ratio

Your debt-to-income ratio is the amount of debt you have compared to your income. Lenders like to see a DTI of 36% or less. If yours is higher, it could make it difficult to get approved.

3. You’re Self-Employed

If you’re self-employed, you’ll likely need to provide more documentation to prove your income. This can make the mortgage approval process more difficult.

4. You Have a High Loan-to-Value Ratio

Your loan-to-value ratio is the amount of your loan compared to the value of your home. Lenders like to see an LTV of 80% or less. If yours is higher, you may need to pay private mortgage insurance.

5. You Have a History of Late Payments

If you have a history of late payments, it could make it difficult to get approved for a mortgage. Lenders like to see a history of on-time payments.

6. You Have a Limited Work History

If you have a limited work history, it could make it difficult to get approved for a mortgage. Lenders like to see a steady work history, and the steadier it is, the more they feel like they can trust you.

7. You Have a Bankruptcy or Foreclosure in Your Past

If you have had bankruptcy or foreclosure in the past, it could make it difficult to get approved for a mortgage. Lenders will typically want to see a waiting period of at least two years before they’ll consider approving you for a loan.


If you have identified any of these red flags in your situation, it is vital that you address them. Of course, some things will be hard to tackle, such as a bad credit score. They take a lot of time and effort on your end to improve. However, if you can, start right away. The earlier you go about it, the earlier you’ll improve on these red flags so that when you do apply for a mortgage, you will succeed without any issues!

Total Lending Concepts is a hometown mortgage lender offering a variety of home loans to meet any situation and needs. If you are looking for a home loan, get in touch with us today!