To apply for a mortgage when purchasing a home, follow these steps: 1) Assess your finances to determine affordability, including down payment savings and debt-to-income ratio. 2) Check credit scores ( aim for 620+ for conventional loans) and address any errors. 3) Secure a pre-approval letter from multiple lenders to strengthen offers. 4) Select a mortgage type—fixed-rate (66% of loans in 2023) or adjustable-rate (34% according to Freddie Mac). 5) Compare lenders for interest rates (average 6.5-7.5% in Q3 2023) and terms. 6) Submit income, asset, and property details to the chosen lender. 7) Underwriting review (typically 30-45 days) including appraisal and title search. 8) Close the loan with final documentation and payment.

This process ensures structured financial readiness and optimal loan terms. Credit scores directly impact mortgage approval and rates; borrowers with scores above 740 pay 0.5-1% less on average (Federal Reserve, 2022). Down payments affect loan type eligibility—FHA loans require 3.5% (vs. 20% for conventional). Pre-approval letters increase offer acceptance rates by 50% (National Association of Realtors, 2023). Lender comparisons save buyers $20,000+ over 30 years (Bankrate, 2023). Underwriting delays average 35 days in 2023, delaying closings (CoreLogic). Closing costs typically total 2-5% of the loan amount, varying by location and loan type. These steps mitigate risks like rejected applications or unfavorable terms, ensuring efficient home purchase.