To secure a mortgage for a used home, follow these steps: 1) Check your credit score and address any issues to qualify for favorable terms. 2) Save for a down payment, typically 3-20% of the purchase price, depending on the loan type. 3) Get pre-approved by a lender to determine your budget and strengthen your offer. 4) Compare loan options (e.g., conventional, FHA, VA) and interest rates. 5) Submit an offer, close on the home, and finalize the mortgage with the chosen lender.

Credit score and down payment are critical factors. A score above 620 often qualifies for conventional loans, while scores below 580 may require a larger down payment or alternative programs. The Federal Housing Administration (FHA) allows 3.5% down for borrowers with scores of 580+, whereas conventional loans may require 20% down to avoid private mortgage insurance (PMI). In 2023, 62% of homebuyers used a mortgage with a down payment of less than 20%, relying on PMI or government-backed loans. Pre-approval increases offer acceptance chances by 40%, as sellers favor buyers with confirmed financing. Loan type impacts rates and requirements: FHA loans had average rates of 6.5% in 2023, while conventional loans averaged 6.2%. Lenders also consider debt-to-income ratios (DTI), typically requiring DTI below 43% for approval. Data from the Consumer Financial Protection Bureau shows that 28% of mortgage denials in 2022 were due to insufficient down payments or high DTI ratios. Thus, thorough preparation and research ensure competitive terms and successful closing.