To secure a loan for an apartment, first check your credit score and address any inaccuracies or issues. Save for a down payment (typically 5-20% of the purchase price) and closing costs (2-5% of the loan amount). Choose a mortgage type, such as fixed-rate or adjustable-rate, based on your financial goals. Get pre-approved by a lender to strengthen your offer and understand loan terms like interest rates, loan duration, and monthly payments. Compare multiple lenders to find the best rates and terms. Finally, ensure you have proof of stable income and assets to meet underwriting criteria.

The steps above are critical because they address the primary factors lenders consider when approving loans. A credit score below 620 may result in higher interest rates or denial, as lenders view lower scores as higher risk. For example, the Federal Reserve reports that borrowers with scores below 620 pay an average of 2-3 percentage points more in interest compared to those with scores above 740. Down payment requirements vary, but a 20% down payment eliminates private mortgage insurance (PMI), saving borrowers hundreds annually. Data from Freddie Mac shows that the average closing cost for a $300,000 loan is $9,000, making pre-saving essential. Pre-approval increases offer strength, with Redfin noting that 72% of homebuyers in 2023 lost bidding wars without it. Comparing lenders is also vital, as the Consumer Financial Protection Bureau (CFPB) found that shopping around can save borrowers up to $1,500 in interest over five years. Understanding loan terms ensures long-term affordability, as misjudging monthly payments can lead to default. Together, these steps mitigate financial risks and improve approval chances.