To apply for a mortgage loan on a property, begin by securing pre-approval from a lender to understand your borrowing capacity. Gather essential documents such as proof of income (pay stubs, tax returns), employment verification, credit reports, and asset details. Submit a loan application with the chosen mortgage type (e.g., fixed-rate, adjustable-rate), property details, and down payment evidence. Underwriters will assess risk, verify information, and issue a conditional approval. Once satisfied, close the loan by signing final documents and paying closing costs.

The mortgage application process requires meticulous preparation to ensure approval and favorable terms. Pre-approval is critical, as it streamlines comparisons and demonstrates financial readiness to sellers. According to the Consumer Financial Protection Bureau (CFPB), 68% of homebuyers obtained pre-approval before applying, reducing offer rejection risks. Credit score impacts loan eligibility significantly; Fannie Mae data shows scores below 620 result in denial for conventional loans, while scores above 740 qualify for the lowest rates. A 20% down payment minimizes mortgage insurance costs, but 94% of buyers in 2023 used less than 20% (National Association of Realtors). Closing costs typically range from 2-5% of the loan amount, averaging $8,000 nationally (Bankrate, 2023). Timely document submission and transparency with lenders reduce delays, as 22% of applications face processing errors (Federal Reserve). These factors collectively influence approval rates and borrowing costs, underscoring the need for structured preparation.