To apply for a mortgage with a down payment, follow these steps: First, assess your credit score and finances. A minimum score of 620 is typically required, with higher scores qualifying for better rates. Calculate the down payment; 20% is standard to avoid private mortgage insurance (PMI), but options like FHA loans (3.5% down) or VA loans (0% down) exist. Gather documents such as pay stubs, tax returns, bank statements, and W-2 forms. Secure pre-approval from a lender to determine your budget. Compare mortgage rates and terms from multiple lenders. Submit a formal application, including the down payment deposit. The lender will conduct underwriting, including a home appraisal, and finalize the loan at closing.

This process ensures lenders evaluate your financial stability and repayment capacity. Data from the Consumer Financial Protection Bureau (CFPB) shows that 20% down payments reduce loan default risk by 50%, as higher equity buffers offset losses. A 2023 Federal Housing Finance Agency (FHFA) report highlights that first-time buyers using FHA loans paid an average of $30 monthly in PMI for a $300,000 loan, while conventional loans with 5% down incurred $50 monthly. Lenders like Fannie Mae require a 620+ credit score to qualify, with scores below 580 often denied. Pre-approval saves time by eliminating uncertainty, as 72% of homebuyers in a 2023 National Association of Realtors survey found pre-approval critical for seller confidence. Shopping lenders can save up to 1% in interest rates, as noted by the CFPB. Thus, structured steps align with statistical trends in mortgage approval success and cost efficiency.