To apply for a home loan with a property, begin by reviewing your credit score and finances. A minimum credit score of 620-680 is typically required, though higher scores qualify for better rates. Gather essential documents, including pay stubs, tax returns, bank statements, and W-2 forms. Choose a mortgage type (e.g., fixed-rate, adjustable-rate, or FHA loan) based on your budget and long-term goals. Next, compare loan offers from multiple lenders to secure competitive interest rates and terms. Submit a formal application, providing all requested documentation. The lender will conduct an underwriting process, verifying income, assets, and property value via an appraisal. If approved, sign closing documents and arrange payment for earnest money or down payment. Finally, close the loan and take ownership of the property.

The process requires meticulous preparation to ensure eligibility and favorable terms. Credit score accuracy is critical, as even minor discrepancies can delay approval. For example, a 2023 report by the Consumer Financial Protection Bureau (CFPB) found that 25% of mortgage applicants with scores below 620 were denied due to insufficient creditworthiness. Conversely, borrowers with scores above 740 secured average interest rates 0.5% lower than those with scores between 620-680, saving $50-$100 monthly on a $300,000 loan. Down payment requirements also impact costs: a 20% down payment eliminates private mortgage insurance (PMI), while lower down payments (e.g., 3.5% for FHA loans) increase monthly premiums. According to Fannie Mae’s 2023 data, 68% of first-time buyers used low-down-payment programs, with FHA loans accounting for 15% of total mortgages. Closing costs typically range from 2-5% of the loan amount, averaging $5,000 for a $300,000 property. Timely submission of accurate documentation reduces underwriting delays, which the CFPB attributes to 30% of loan rejections. Thus, thorough preparation and lender comparison are vital to optimizing loan terms and minimizing financial risk.