To apply for a home loan and bank financing, follow these steps: 1) Check your credit score and address any errors to ensure eligibility. 2) Save for a down payment (typically 3-20% of the purchase price) and closing costs (2-5% of the loan amount). 3) Get pre-approved by a lender to understand your budget and strengthen your offer. 4) Compare loan types (e.g., fixed-rate, adjustable-rate) and interest rates from multiple lenders. 5) Submit a formal loan application with documents like pay stubs, tax returns, bank statements, and W-2 forms. 6) Undergo a property appraisal and inspection. 7) Sign closing documents and finalize the transaction.

The process requires meticulous preparation to secure favorable terms and avoid delays. A credit score above 620 is often needed for conventional loans, with lower scores leading to higher rates or denial. For example, Fannie Mae mandates a 620+ score for its loans, while FHA loans accept 580+. A 20% down payment minimizes mortgage insurance costs, saving borrowers up to $100,000 over a 30-year loan. The Consumer Financial Protection Bureau (CFPB) reports that 20% of buyers use savings for closing costs, which average $8,000 nationally. Pre-approval increases offer acceptance chances by 17%, according to the National Association of Realtors (NAR). Lender comparisons are critical, as rates can differ by 0.5-1.5% between institutions. Documenting income and assets reduces underwriting time by 30%, per Quicken Loans data. Finally, closing costs vary by location—HousingWire notes they average $8,875 in 2023, impacting overall affordability. These steps ensure compliance with lender requirements, optimize loan terms, and streamline the transaction.