To secure a mortgage for home purchase, start by improving your credit score above 620, as lenders prioritize borrowers with higher scores for lower interest rates. Save for a down payment of at least 3-20%, depending on the loan type, to reduce mortgage insurance costs. Secure pre-approval from multiple lenders to understand your budget and strengthen offers. Choose a fixed-rate loan for stability or an adjustable-rate loan for lower initial payments. Finally, compare closing costs and terms to minimize long-term expenses.

Credit score optimization is critical because lenders use it to assess risk. A score above 740 typically qualifies for the best rates, while scores below 580 may require a cosigner or government-backed loans like FHA mortgages. According to the Consumer Financial Protection Bureau (CFPB), 63% of mortgage applicants with scores below 620 were denied in 2022, highlighting the importance of credit health. A 20% down payment eliminates private mortgage insurance (PMI), saving borrowers up to $100 monthly on a $300,000 loan, as calculated by Fannie Mae. Pre-approval increases offer acceptance chances by 50%, per real estate data from Redfin, and reduces home search time by 30%. Lenders also consider debt-to-income (DTI) ratios; those under 43% have a 70% higher approval rate, according to the Federal Reserve. Combining these factors ensures competitive rates, lower costs, and higher approval likelihood.