If you have never applied for a mortgage loan before and are not sure if you qualify for one at this time, there are several things you can look at before you fill out your application that can help you know whether your chances of getting approved are favorable. The best way to do this is to understand the common things that lenders view as red flags. When lenders see these red flags, they will be quicker to reject your application. Here are several of the things that can cause lenders to do this.

Gaps or changes in employment

The number one thing lenders look for with employment is stability. They want to know that an applicant has a steady job with normal income. If you have gaps in your employment history or too many different jobs, the lender may view this as a red flag. The best thing you could do in this situation is find a job you like and stay there for at least two years. Once you have hit the two-year period, you could then apply for a mortgage loan.

Low credit score

Lenders always perform credit checks before approving mortgages, and they often consider low scores a red flag. People can have low credit scores for many reasons, and some of these reasons might be out of their control, but low credit does not come across as a favorable factor in a loan application. If your score is low, consider working on it for the next year or two to see if you can get it up by a significant amount.

Too much debt

Having too much debt is another red flag to lenders, because they worry that a person with a lot of debt will not be able to repay the loan if they approve it. It's better to wait to apply for a loan until you have paid off most of your debt.

Not enough cash on hand

The other red flag you should know about is not having any cash on hand. If you want to buy a house but do not have any money in the bank, your lender might also be very cautious about approving the loan. Without any cash, you would have no way to make a down payment or make your payments if you lost your job.

If you've had the same job for many years, good credit, very little debt, and a decent amount of money in the bank, you will probably qualify for a loan. To find out, contact a mortgage lender to start the application process. Places like Weyco Community Credit Union can help.