To secure a loan for a resale home, first assess your credit score and financial stability. obtain pre-approval from a lender to strengthen your offer. research loan types such as conventional, FHA, or VA loans based on eligibility and interest rates. schedule a professional home appraisal to confirm the property’s value. finally, compare closing costs and terms across multiple lenders.

The process begins with credit evaluation as lenders prioritize borrowers with scores above 760 for optimal rates. Pre-approval, supported by data from the National Association of Realtors, increases offer acceptance by 40% compared to unapproved buyers. Loan types vary; conventional loans offer lower rates (3.5-7.5%) for creditworthy applicants, while FHA loans require smaller down payments (3.5%) but higher premiums. A 2023 Federal Housing Finance Agency report noted that 68% of resale buyers used conventional loans, reflecting their popularity. Home appraisals, averaging $450 nationally, prevent overpayment by ensuring alignment with market value. Closing costs, typically 2-5% of the loan amount, are critical to budgeting, as 22% of first-time buyers cited unexpected fees as a primary challenge (U.S. Census Bureau, 2022). These steps collectively reduce financial risk and streamline transactions.