San Antonio mortgage lenders generally want to see a few things and you will want to avoid any of these major faux pas.

To be approved for a home loan, you’ll need to show your lender that you (and your spouse or partner, if they’re purchasing along with you) are a safe and low-risk investment. 

Sound intimidating? Thankfully, we've got four tips to help you put your best foot forward and streamline your approval process. 

San Antonio mortgage lenders generally want to see that you: 1) Pay your bills on time, 2) Don’t have too much outstanding debt, and 3) Have a reliable stream of income with which to pay your loan installments.

You’ll need to provide many financial documents (i.e., bank statements, pay stubs, tax returns and more), and your lender may need to verify your employment with your boss or HR department.

Additionally, you will want to avoid any of these major faux pas while your application is being considered:

1. Outrageous purchases. Your lender is going to look over your bank statements, and any big-ticket debits will likely send up a huge red flag. In a lender's mind, how can you be considered a responsible financial applicant if you’re spending large chunks of cash on elaborate vacations or luxury cars right before purchasing a home? Stay frugal while your application is under review, and be mindful of where your dollars are going (Because your lender sure will be!). 

2. Brand new lines of credit. Your mortgage loan is a line of credit — one you’ll be paying back for many, many years to come. Signing up for a new credit card, getting a new auto loan, or taking out any other type of credit will only mean more payments on the horizon...and that can scare a lender off in an instant.

3. Missed payments. In a perfect world, you’d pay off your credit cards and other debts in full as soon as the bill came in. However, most people don't have that luxury. If you’re not able to pay down your debts before applying for a mortgage loan, we recommend at least making your minimum payment — and doing it on time (or even early.) Missed payments send off the alarm bells for a lender!

4.Too Many Credit Checks. Checking your credit once to assess your financial status is fine...but avoid doing it often and repetitively. Multiple credit checks tell a lender that you either: 1) Have been applying for lots of new lines of credit, or 2) You’re worried about your financial situation. Neither is a sign you’re a safe bet for a mortgage.

Applying for a mortgage loan? Just be careful of where you put your dollars (and work toward paying down your debts as best you can). If you can show your lender you’re financially responsible and reliable, you’ll be well on your way to homeownership.  

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