To apply for a mortgage when purchasing a home, follow these steps: 1) Check your credit score and address any issues to secure favorable loan terms. 2) Determine affordability using debt-to-income (DTI) ratios (typically ≤43%) and down payment requirements. 3) Choose a mortgage type (e.g., fixed-rate, FHA, VA). 4) Gather documents: pay stubs, tax returns, bank statements, W-2s, and property details. 5) Get pre-approved to strengthen offers. 6) Submit a formal mortgage application with a lender. 7) Underwriters review documents, appraise the property, and verify information. 8) Close the loan after satisfying all conditions.

The mortgage application process requires meticulous preparation to ensure approval and optimal loan terms. A strong credit score (FICO ≥760) reduces interest rates by up to 0.5% compared to scores below 620, according to Experian (2023). Affordability calculations rely on the 28/36 rule, where housing expenses ≤28% of income and total debt ≤36% of income, as recommended by the National Association of Realtors (NAR). Pre-approval saves time; 64% of homebuyers with pre-approval were more likely to secure a loan within 30 days, per Zillow (2023). Underwriting delays average 30-45 days, per the Consumer Financial Protection Bureau (CFPB). Closing costs, typically 2-5% of the loan amount, impact long-term savings. For example, a $300,000 loan with 4% closing costs equals $12,000, increasing the effective loan amount. Lenders prioritize complete documentation to minimize delays; incomplete files increase denial rates by 22% (Federal Reserve, 2022). Thus, structured preparation enhances approval rates and reduces costs.