To secure a mortgage for home purchase, follow these steps: 1) Check and improve your credit score (aim for 620+); 2) Calculate affordability using a mortgage calculator, including down payment (3-20%), closing costs (2-5% of loan), and mortgage insurance (if applicable); 3) Obtain pre-approval from multiple lenders to strengthen offers; 4) Shop for loan types (e.g., conventional, FHA, VA); 5) Submit a formal application with income, asset, and property details; 6) Undergo appraisal and inspection; 7) Close the loan with final payments. Lenders prioritize stable credit, sufficient income (typically 2.5-3.5x monthly payments), and low debt-to-income ratios (<43%). Pre-approval increases offer acceptance by 30-40% in competitive markets (National Association of Realtors, 2023). A FICO score above 740 reduces mortgage rates by ~0.5% compared to scores below 620 (Federal Reserve, 2022). Average 30-year fixed rates were 6.94% in Q3 2023 (Freddie Mac), while FHA loans offer lower rates (5.8%) for 3.5% down payments. Closing costs average $5,000-$8,000 (Bankrate, 2023).

The process prioritizes credit health and pre-approval because lenders assess risk through creditworthiness, debt levels, and property value. A strong credit score lowers interest costs over the loan term—every 20-point increase can save $50-$100/month on a $300,000 loan (MyFico). Pre-approval expedites purchasing power, with 72% of buyers winning offers faster (, 2023). Down payments affect loan type eligibility and insurance costs; 20% equity avoids PMI but requires larger upfront capital. Recent data shows 45% of first-time buyers used FHA loans in 2023 due to lower down payments (U.S. Census). Underwriting delays occur in 15-20% of applications due to document errors or income discrepancies (Consumer Financial Protection Bureau). Closing costs vary regionally, with urban areas averaging $7,500 vs. suburban $5,200 (Bankrate). mortgage application, credit score optimization