To perform a mortgage on a home purchase, follow these steps: secure pre-approval from a lender, submit an offer accepted by the seller, complete a home appraisal, obtain loan underwriting approval, finalize closing documents, and transfer ownership. The buyer must provide a down payment (typically 5-20% of the purchase price), meet credit score requirements (usually 620+ for conforming loans), and comply with income and debt-to-income ratio guidelines. Once approved, the mortgage is recorded with the local government, and the buyer assumes monthly payments.

The mortgage process ensures financial institutions assess risk while enabling home ownership. According to the Consumer Financial Protection Bureau (CFPB), 20% of mortgage applications were denied in 2022 due to insufficient income or poor credit, highlighting the importance of pre-approval and financial readiness. Fannie Mae data shows 30-year fixed-rate mortgages accounted for 75% of loans in 2023, reflecting their popularity for long-term stability. Closing costs average 2-5% of the purchase price, per the National Association of Realtors, often requiring additional savings. Lenders also prioritize debt-to-income ratios below 43% to mitigate default risks, as noted by the Federal Reserve. These requirements balance lender safety with buyer accessibility, fostering a structured market for home purchases.