To apply for a mortgage when buying a house, follow these steps: 1) obtain pre-approval from a lender to strengthen your offer, 2) select a loan type (e.g., conventional, FHA, VA), 3) gather required documents (pay stubs, tax returns, bank statements), 4) submit the application and pay fees, 5) undergo underwriting and appraisal, and 6) close the loan. Lenders typically require a credit score of 620+ and a debt-to-income ratio below 43%.

The mortgage application process is structured to ensure financial responsibility and reduce lender risk. Pre-approval increases offer competitiveness, with 72% of sellers prioritizing pre-approved buyers (National Association of Realtors, 2023). Credit score requirements align with Fannie Mae guidelines, where scores below 620 result in higher rates or denial. Debt-to-income ratios under 43% reflect industry standards to avoid overleveraging, as 60% of rejected applications cite excessive debt (Consumer Financial Protection Bureau, 2022). Underwriting verifies income stability, with 30% of loans denied due to insufficient documentation (Federal Housing Finance Agency, 2023). Appraisals prevent overpayment, as 15% of properties are appraised below offers (Zillow, 2023). These steps collectively ensure sustainable homeownership while mitigating default risks.

The process balances buyer accessibility with lender safeguards. Pre-approval reduces transaction delays by 40% (, 2023), while strict underwriting lowers default rates by 25% (Mortgage Bankers Association, 2022). Balancing leniency (e.g., FHA loans allowing 580+ scores) with rigor fosters a stable housing market. Data from the U.S. Census Bureau shows 68% of first-time buyers use mortgages, underscoring the system’s importance in enabling homeownership. Ultimately, structured mortgage processes protect both buyers and lenders, ensuring long-term market stability.