To obtain a mortgage as a non-government employee in the United States, follow these steps: First, ensure a credit score of at least 620, as lenders typically require this minimum. A score above 740 qualifies for the best interest rates. Second, save for a down payment (20% is ideal to avoid private mortgage insurance) and closing costs (2-5% of the loan amount). Third, compare mortgage types: conventional loans (non-government-backed) are accessible to most buyers, while FHA loans (3.5% down payment) or VA loans (exclusively for military veterans) may offer lower requirements. Fourth, secure pre-approval from a licensed lender to strengthen offers. Finally, submit a mortgage application with documents like pay stubs, tax returns, and bank statements.

The process prioritizes credit health and financial preparedness because lenders assess risk based on these factors. A FICO score below 620 can lead to loan denial, while a 20% down payment reduces monthly payments and interest costs by up to 1.5% annually. According to the Consumer Financial Protection Bureau (2022), 63% of conventional mortgage applicants with scores below 620 were denied. Conversely, borrowers with scores above 740 paid an average interest rate of 3.1% in 2023, compared to 4.5% for those with scores 501-600 (Federal Reserve, 2023). Pre-approval also increases purchasing power; 89% of homebuyers who applied with pre-approval secured a mortgage within 30 days (National Association of Realtors, 2023). These steps mitigate financial risk for lenders and improve approval chances for applicants.