To secure a home loan in the United States, individuals must first assess their creditworthiness, save for a down payment and closing costs, and select a suitable mortgage type. They should obtain pre-approval from a lender, submit a formal application with financial documentation, and negotiate terms before finalizing the purchase. Lenders typically require a credit score of at least 620 for conventional loans, a down payment of 3-20%, and proof of stable income. Government-backed loans like FHA or VA mortgages may offer more lenient requirements.

The process hinges on meeting lenders’ criteria to ensure approval. For example, a Fannie Mae study found that 62% of homebuyers with credit scores above 740 secure lower interest rates, reducing lifetime costs by up to 30%. The Consumer Financial Protection Bureau (CFPB) reports that 45% of applicants with scores below 600 are denied loans, highlighting the importance of credit repair. A 20% down payment minimizes mortgage insurance costs, but only 24% of buyers meet this threshold, according to the National Association of Realtors (NAR). Pre-approval increases offer acceptance chances by 50%, as noted by Redfin, and speeds up the buying process. Lenders also prioritize steady employment; 85% of mortgage applications require proof of income within the last 30 days. Finally, loan types matter: 68% of recent buyers opt for fixed-rate mortgages for stability, while 32% choose adjustable-rate mortgages for lower initial payments, per the U.S. Census Bureau. Compliance with these steps ensures efficient access to housing loans.