If you’re ready to buy a house, having a solid credit score and a history of on-time bill payments can make you feel confident. But good credit alone isn’t always enough.

Here’s a look at what can slow down (or completely stop) your mortgage application — even with a great score.

When Your Debt Works Against You

Your credit score is an important factor when applying for a mortgage, but lenders also look closely at how much debt you’re currently carrying.

Although you don’t have to be completely debt-free to qualify, too much debt can limit how much a lender is willing to offer you. And in some cases, it can prevent you from qualifying altogether.

That’s because lenders calculate something called your debt-to-income ratio, or DTI. This is the percentage of your monthly income that goes toward paying debts. Most lenders want to see a DTI below 43%, though staying under 36% can make you a stronger applicant.

For example, if you have higher car payments (let’s say two vehicles that cost you a combined $1,200 a month), this could significantly reduce the size of the mortgage you’re approved for.

Employment Red Flag

Just because you’re getting a paycheck doesn’t mean you’re automatically in the clear for a mortgage.

A lot of people assume that if they’ve had no trouble getting approved for an apartment, buying a home should be just as simple. But renting and getting a mortgage are two very different processes.

A mortgage is a long-term commitment, so lenders must make sure that your income is steady and reliable. In most cases, they want to see at least two years of consistent employment. If you just started your first job and have only received a couple of paychecks, that might not be enough to qualify.

The same goes for self-employment. If you run your own business and want to use that income to qualify, lenders usually need at least two years of tax returns showing that your income is stable.

Side hustles can be tricky too. If you haven’t had the income for long or it goes up and down from month to month, a lender may not count it at all.

Even if you’re working now, gaps in your job history or recent changes in career fields can raise questions too. Lenders want to know you’re not just employed, but that your income is likely to stick around.

Limited Cash for Mortgage-Related Expenses

Buying a home can be more expensive than most people expect. You might be prepared to make a down payment, but the total amount of cash you need upfront often goes beyond that.

One of the biggest surprises for first-time buyers is closing costs, which usually add up to an additional 2 to 5 percent of the loan amount.

Even with solid income and perfect credit, limited funds can delay your home buying plans. If you don’t have enough saved — and you’re not eligible for grants or able to receive gift funds from a family member — it can be hard to move forward.

Paper Trail Issues

Lenders don’t just take your word for it — they want everything documented. That means your income, your bank activity and where your down payment comes from. Every dollar must be accounted for.

In other words, if you’re moving money between accounts, you’ll need to provide statements for each one. If you’re using savings for the down payment, they’ll want to see where that money has been sitting. Any large deposits need to have a clear source.

One mistake is keeping cash at home. Some people might think it’s safer. But if that money hasn’t been in your bank account for at least 60 to 90 days, it usually can’t be used.

That might sound strict, but from a lender’s perspective, it’s about reducing risk. They want to make sure the money isn’t borrowed at the last minute or coming from an unverified source.

If you’re applying for a home loan for the first time, it’s completely normal not to understand every detail of the process. There’s a lot more to it than just having good credit, and sometimes those unknowns can delay or prevent you from buying right now.

The good news is you don’t have to figure it all out on your own. The loan experts at FirstBank Mortgage are here to help. If you have questions or need guidance, don’t hesitate to contact us.