About one in every 10 mortgage applications is denied.

While this might seem like a small percentage (10%), there’s a chance the application that’s denied is yours. There are several reasons a lender can reject a mortgage application, and there are also several steps you can take to give your application the best shot at being approved.

One of the things you can do is to ensure you’re starting the mortgage process at just the right time.

The big question is: when is the right time to apply for a mortgage? Since there’s no smoke signal, it can be difficult to know the best time, but we are here to help.

Continue reading for top mortgage loan application tips.

When Your Credit Score Is Good

Your credit is a critical factor in the mortgage process. Any home lender will look at your credit history before making a lending decision.

Generally, you need good credit to qualify for a conventional mortgage. The exact good credit score required varies from lender to lender, so ensure you know your specific lender’s requirements.

Having bad credit doesn’t necessarily mean you’re disqualified from getting a mortgage. There are mortgages like VA home loans that accept lower credit scores and lenders will approve your application as long as other conditions are met.

Your Income Is Stable

Credit? Check?

Income?

You need a combination of good credit and a solid, reliable income to qualify for a mortgage. While your credit proves your creditworthiness, it doesn’t necessarily tell of your financial liquidity. For the latter, lenders need to look at your income.

According to Daily Prosper a mortgage is a long-term financial commitment, typically between 15 and 30 years. You need to prove that you’ll have enough income throughout the term of the loan to service it.

Most conventional mortgage lenders want to see that you have worked at your job for at least two consecutive years. If you’ve got employment gaps, most lenders will be wary of approving your loan.

So, if you recently changed jobs or it’s been a few months since you started on a job, it’s not wise to apply for a mortgage.

Your Debt-to-Income Ratio Is Low

Your debt-to-income ratio is the ratio of your monthly debt payments to your monthly income.

Like the average American consumer, you certainly have a couple of existing loans, such as an auto loan, student loan, and personal loan.

If you’re spending more than half of your income on debt repayment, your DTI is high. This isn’t what mortgage lenders want to see. Ideally, you want to apply for a mortgage when your DTI is lower than 43 percent. This will give you the best chance of getting approved.

Mortgage Rates Are Favorable

You’ll pay interest on your mortgage. You want to get the lowest interest rate possible.

There are a number of factors that lenders will use to set your rate, but it’s best to go in for a mortgage when the current mortgage rates are at their lowest.

Be Smart About the Mortgage Process

The mortgage process can be long and tiring but the goal is to get to the end successfully. Getting approved for a mortgage is a big step, but with adequate preparation and good timing, you’ll improve your chances of getting the nod.

Keep reading our blog for more information on mortgages, homeownership, and real estate investing.