To obtain a mortgage in the United States, individuals must first assess their credit score, which typically needs to be at least 620 for conventional loans. They should calculate their debt-to-income ratio (DTI) to ensure it stays below 43% for conforming loans. Securing pre-approval from a lender helps determine borrowing capacity and strengthens offer competitiveness. Next, compare loan types (e.g., fixed-rate vs. adjustable-rate mortgages) and interest rates from multiple lenders. Submit a complete application with documents like pay stubs, tax returns, bank statements, and W-2 forms. Lenders then perform underwriting, which may include a property appraisal and title search. Finally, close the loan by signing final paperwork and paying closing costs, which average $5,000 to $15,000.

The mortgage process prioritizes creditworthiness and affordability to minimize default risk. A Fannie Mae study found that borrowers with scores above 740 pay 0.25% less in interest compared to those with scores between 620-639. The 28/36 rule (housing costs ≤28% of income, total debt ≤36%) ensures repayment sustainability, as 63% of loans denied in 2023 exceeded these thresholds (Federal Reserve data). Pre-approval reduces offer rejection by 30% (Zillow Research), while comparing lenders saves an average of $100,000 over 30 years (Bankrate). Down payments averaging 20% (FHA loans require 3.5%) lower loan costs and leverage equity. Underwriting ensures properties meet safety standards, with 85% of rejected loans involving issues like outdated electrical systems (CoreLogic). Closing costs cover title insurance, origination fees, and inspections, safeguarding both buyers and lenders.