To secure a $200,000 loan for buying a house, follow these steps: obtain mortgage pre-approval to understand borrowing capacity, ensure a credit score of at least 620-680 for competitive rates, save a 5-20% down payment (with FHA loans requiring as little as 3.5%), maintain a debt-to-income (DTI) ratio below 43%, and compare conventional, FHA, or VA loans. Lenders prioritize stable income, low debt, and strong credit.

Mortgage pre-approval is critical as it streamlines home shopping and signals sellers of financial readiness. A credit score above 620 reduces interest rates; for example, a 640 score may yield a 4.5% rate, while a 740 score could secure 3.75% (Federal Housing Finance Agency, 2023). A 20% down payment avoids private mortgage insurance (PMI), saving $100 monthly on a $200,000 loan at 4%. However, FHA loans with 3.5% down require mortgage insurance, adding $80-$100 monthly. Debt-to-income ratios below 43% align with Fannie Mae guidelines, ensuring repayment stability. The average U.S. down payment was 13% in 2022 (National Association of Realtors), but lower percentages increase loan costs. Loan types vary: conventional loans suit higher credit scores, while FHA/VA offer flexibility for lower scores or minimal down payments. Shopping 3-5 lenders can save up to 0.5% on rates, per Consumer Financial Protection Bureau data. Combining these strategies maximizes loan approval chances and minimizes long-term costs.