To apply for a mortgage on a new home, first assess your financial readiness by checking your credit score (ideally 620+), calculate a down payment (3%-20%), and gather documents like pay stubs, tax returns, and bank statements. Secure pre-approval from a lender to strengthen your offer. Compare loan types (fixed-rate, FHA, VA) and select a lender offering competitive rates. Submit a complete application, including the loan estimate and disclosures. The underwriter will review documentation, conduct a property appraisal, and verify income/expenses. Once approved, finalize the loan with a closing ceremony, paying fees (average $5,000-$8,000) and receiving keys.

This structured approach ensures compliance with lending standards and optimizes borrowing terms. A 2023 Consumer Financial Protection Bureau (CFPB) report found that 63% of mortgage denials occur due to insufficient documentation or credit score issues. Lenders like Fannie Mae require a minimum 620 FICO score for conforming loans, with rates dropping 0.5% for scores above 760. A 20% down payment eliminates private mortgage insurance (PMI), saving $100 monthly on a $300,000 loan (Federal Reserve, 2022). Pre-approval increases offer acceptance by 40% (National Association of Realtors, 2023), as sellers prioritize serious buyers. Average closing costs ($7,424 in 2023) cover appraisal, origination, and title fees, but negotiating these can reduce expenses. Following these steps systematically minimizes delays and secures favorable terms, reflecting industry best practices and empirical data on successful mortgage outcomes.