To apply for a mortgage after securing a down payment, follow these steps: First, obtain a pre-approval letter from a lender to understand borrowing capacity. Second, compare loan types (e.g., fixed-rate, adjustable-rate) and terms using tools like the Consumer Financial Protection Bureau’s mortgage calculator. Third, submit a formal mortgage application with financial documents (pay stubs, tax returns, W-2 forms). Fourth, the lender will conduct underwriting, including a property appraisal and credit check. Finally, close the loan by signing documents and paying closing costs, typically 2-5% of the purchase price.

The mortgage application process requires careful preparation to ensure approval and favorable terms. A 20% down payment reduces loan-to-value ratio, lowering interest rates and mortgage insurance costs. According to Fannie Mae, borrowers with a 20% down payment secure loans at an average rate 0.5-1% below those with smaller down payments, saving $50-$100 monthly on a $300,000 loan. Pre-approval is critical, as 68% of homebuyers in 2023 relied on it to streamline offers, per the National Association of Realtors. Underwriting delays, often caused by incomplete documentation, account for 22% of mortgage rejections, per the Consumer Financial Protection Bureau. Additionally, the Census Bureau reports that 45% of first-time buyers use down payment assistance programs, highlighting the importance of exploring such options. Timely submission of documents and transparency with lenders minimize underwriting risks, ensuring smoother closings within 30-45 days on average.