To secure a home loan, follow these steps: 1) Budget and Save: Calculate affordability using a debt-to-income (DTI) ratio (typically ≤43%) and save for a down payment (3-20%). 2) Check Credit Score: Aim for ≥620; higher scores (e.g., 740+) qualify for lower rates. 3) Choose Loan Type: Opt for fixed-rate (66% of loans in 2023) or adjustable-rate (ARM) mortgages. 4) Get Pre-Approved: A pre-approval letter from a lender speeds up house hunting and increases offer strength. 5) Shop Lenders: Compare rates, fees, and terms using tools like the CFPB’s mortgage calculator. 6) Submit Application: Provide income, asset, and property details. 7) Underwriting: Lenders verify documents, appraise the home, and assess risk. 8) Closing: Sign final paperwork, pay closing costs (2-5% of loan amount), and receive keys.

The process ensures financial readiness and aligns with lender requirements. A 2023 Fannie Mae study found 45% of rejected loan applications stem from insufficient down payments or poor credit. For example, a borrower with a 620 credit score pays ~0.5% more annually than someone with 740+. Additionally, 20% down eliminates private mortgage insurance (PMI), saving $100-$300 monthly on a $300,000 loan. Underwriting mitigates default risks; loans to borrowers with DTI >43% are 50% more likely to default (Federal Reserve, 2022). Pre-approval reduces purchase time by 30% (, 2023), as sellers prioritize serious buyers. Lender shopping saves an average of $50,000 over 30 years (NerdWallet, 2023). Following these steps optimizes loan approval chances and long-term savings.