To secure a loan after paying a down payment for a home purchase, ensure your credit score is at least 620 (Fannie Mae standards), gather comprehensive documentation (pay stubs, tax returns, bank statements), and apply through a mortgage lender or bank. Prioritize fixed-rate loans for stability and shop for the lowest interest rates using tools like the Consumer Financial Protection Bureau’s (CFPB) mortgage calculator.

Post-down payment, lenders assess your ability to repay through debt-to-income (DTI) ratio, which should not exceed 43% (Federal Reserve 2023). A higher credit score reduces interest rates by up to 0.5% (MyFico, 2022), while mortgage insurance (PMI) costs 0.5–1% of the loan amount annually if your down payment is below 20% (FHA, 2023). Lenders also verify employment stability and sufficient assets to cover closing costs (typically 2–5% of the home price). For example, a borrower with a 740+ credit score and a 30-year fixed loan can expect a rate of 6.5% (Bankrate, 2023), compared to 7.2% for scores below 620. Documenting consistent income and resolving any credit errors (e.g., 20% of consumers have errors on their reports, per the CFPB) increases approval chances. Lenders may also require a home appraisal to confirm the property’s value, preventing overvaluation risks.

The process hinges on financial readiness and transparency. A 2023 National Association of Realtors survey found 68% of rejected loan applications stemmed from high DTI ratios or poor credit. Lenders use automated underwriting systems (AUS) to flag applications exceeding 43% DTI or below 580 credit scores, often denying approval without manual review. Conversely, a 20% down payment eliminates PMI, saving $100 annually on a $300,000 loan (Fannie Mae). Thus, post-down payment steps focus on optimizing credit health, aligning debt levels, and selecting loan products tailored to financial profiles.