To apply for a home loan after making a down payment, follow these steps: First, obtain pre-approval from a mortgage lender to understand your budget and strengthen your offer. Second, gather required documents such as proof of income, tax returns, bank statements, and a down payment verification letter. Third, submit a loan application with the lender, including the down payment deposit. Fourth, await underwriting, where the lender assesses your financial health and property value. Finally, close the loan after satisfying all conditions.

This process ensures compliance with mortgage guidelines and optimizes approval chances. A down payment reduces loan-to-value (LTV) ratio, lowering interest rates and mortgage insurance costs. For example, a 20% down payment eliminates private mortgage insurance (PMI) in most cases, saving an average of $50–$100 monthly (Fannie Mae, 2023). Pre-approval increases offer acceptance rates by 40% compared to unapproved buyers (National Association of Realtors, 2022), as sellers prefer financing-ready buyers. Document thoroughness minimizes underwriting delays, which account for 25% of loan denials (Consumer Financial Protection Bureau, 2021). Underwriting verifies property value through appraisals, preventing 15% of loans from closing due to overvaluation (Federal Housing Finance Agency, 2023). Thus, each step systematically mitigates risks and aligns with lender and investor requirements.