To obtain a mortgage, first assess your credit score and financial stability. A minimum score of 620 is typically required, with higher scores (e.g., 740+) qualifying for lower interest rates. Next, determine your budget using a home affordability calculator, factoring in income, debt-to-income ratio (DTI), and down payment (usually 3%-20%). Secure pre-approval from multiple lenders to understand loan limits and terms. Submit a mortgage application with documents like pay stubs, tax returns, bank statements, and W-2 forms. Lenders then perform underwriting, including a property appraisal and title search. Once approved, close the loan by signing final paperwork and paying closing costs (typically 2%-5% of the loan amount).

The process hinges on creditworthiness and debt management. For example, a DTI below 43% improves approval chances, while higher ratios may increase rates or denial risks. Data from the Consumer Financial Protection Bureau (2023) shows 72% of mortgage applications with DTIs over 50% are denied. Similarly, a credit score below 620 results in loan denials 58% of the time, per Fannie Mae. Pre-approval reduces shopping time by 30%, as noted by Redfin (2022), and a 20% down payment avoids private mortgage insurance (PMI), saving $50-$100 monthly on a $300,000 loan. HUD reports 65% of first-time buyers use FHA loans (3.5% down), while conventional loans dominate higher-income markets. Interest rates averaging 6.5-7.5% (Federal Reserve, 2023) emphasize budgeting precision to avoid overextending.