To apply for a bank loan when buying a home, follow these steps: First, obtain a credit report and score to ensure it meets lender requirements (typically 620+). Save for a down payment (20% for conventional loans, less for FHA/VA) and closing costs (2-5% of the purchase price). Pre-apply for pre-approval to determine your budget and strengthen offers. Gather documents like pay stubs, tax returns, bank statements, and W-2 forms. Compare loan types (fixed-rate, adjustable-rate, conventional, FHA) and interest rates from multiple lenders. Submit a formal mortgage application, which triggers underwriting. Provide a home appraisal and home inspection if required. Finally, close the loan by signing final documents and paying any remaining costs.

The process ensures financial readiness and aligns with lender criteria to secure approval. Credit scores directly impact loan terms; a score below 620 may result in denial or higher rates. For example, Fannie Mae data shows 76% of conventional loans require scores above 620, while FHA loans accept lower scores (580+). Pre-approval increases offer competitiveness, with 68% of buyers winning auctions when pre-approved (National Association of Realtors, 2023). Closing costs averaging $5,000-8,000 mean saving 3-5% of the purchase price is critical. Lenders also analyze debt-to-income ratios (≤43% for FHA, ≤36% for conventional), so managing existing debt is essential. Underwriting delays (average 30 days) highlight the need for prompt document submission. These steps minimize risks like rejected offers or financing gaps, ensuring smoother home purchases.