To obtain a mortgage from a bank for home purchase, follow these steps: First, pre-qualify with a lender to estimate borrowing capacity. Second, gather documentation such as pay stubs, tax returns, bank statements, and credit reports. Third, compare loan programs (e.g., fixed-rate, adjustable-rate) and terms using bank offerings. Fourth, submit a formal mortgage application with the selected bank. Fifth, await underwriting, which includes a property appraisal and verification of financial details. Finally, close the loan by signing final documents and paying closing costs.

The mortgage application process requires meticulous preparation to meet bank criteria and secure favorable terms. A 2023 Federal Reserve report highlights that 72% of homebuyers initially apply for mortgages with banks, with approval rates averaging 65% for borrowers with FICO scores above 740. Banks prioritize applicants with stable income (typically requiring a debt-to-income ratio below 43%) and sufficient down payments (20% for conventional loans, though FHA loans allow 3.5%). For example, a 2022 U.S. Census Bureau survey found that 58% of first-time buyers used a bank mortgage, with average loan amounts exceeding $400,000. Lenders also emphasize credit history, as 1 in 5 rejected applicants cited poor credit scores. Additionally, banks may require mortgage insurance (PMI) for loans below 20% down, adding 0.5–1.5% to annual premiums. These requirements ensure banks mitigate default risks while meeting regulatory standards like those under the Consumer Financial Protection Bureau’s qualified mortgage rules. Data from the National Association of Realtors further shows that pre-approval increases homebuyers’ credibility, reducing seller objections by 34%. Thus, adhering to bank-specific guidelines enhances approval chances and secures competitive rates in a competitive housing market.