To apply for a bank loan to buy a home, first assess your credit score and financial stability. Save for a down payment (typically 20% to avoid private mortgage insurance) and gather documents like pay stubs, tax returns, and bank statements. Secure pre-approval from multiple lenders to understand your budget and strengthen your offer. Compare loan types (fixed vs. adjustable rate) and terms, and finalize a loan estimate. Finally, submit a completed mortgage application with all required paperwork, and await underwriting and closing.

The process requires meticulous preparation to ensure eligibility and secure favorable terms. A strong credit score (700+ recommended by FICO) significantly reduces interest rates, as shown by the Federal Reserve: borrowers with scores above 740 pay 0.5% less on average. Pre-approval, cited by the National Association of Realtors, increases homebuying success by 50%, as sellers favor serious buyers. A 20% down payment minimizes mortgage insurance costs, which can exceed 2% of the loan amount annually, per the Consumer Financial Protection Bureau. Lenders also consider debt-to-income ratios; maintaining a ratio below 43% improves approval chances, as per guidelines from the U.S. Department of Housing and Urban Development. Timely submission of accurate documents reduces processing delays, which average 30 days according to Bankrate. These steps collectively enhance credibility, lower borrowing costs, and streamline the transaction.