To buy a house with a mortgage, follow these steps: 1) Check and improve your credit score ( aim for 620+ for conventional loans); 2) Save for a down payment (20% minimizes private mortgage insurance); 3) Get pre-approved by a lender to determine borrowing capacity; 4) Work with a real estate agent to find properties; 5) Make an offer and negotiate terms; 6) Secure final mortgage approval through underwriting; 7) Close the transaction. Pre-approval strengthens offers, reduces financing delays, and increases seller confidence.

Credit score optimization is critical because lenders use it to assess risk. A FICO score above 740 typically qualifies for the best 30-year fixed rates (around 4.0-4.5%), while scores below 620 may result in denial or higher rates. For example, a 2023 Federal Reserve study found that 45% of mortgage applicants with scores below 580 were rejected. Down payments also impact costs: 20% equity avoids monthly PMI premiums (averaging $100-$200 monthly on a $300,000 loan), while 10% payments require 0.5-1.5% PMI. Pre-approval letters, verified by lenders, increase offer acceptance rates by 50% (National Association of Realtors, 2022). Underwriting typically takes 30-45 days, with 60% of loans denied due to documentation issues or income gaps (Mortgage Bankers Association, 2023). Closing costs average $5,000, including origination fees, appraisals, and title insurance. Strategic planning and professional guidance significantly reduce financial risks and timeframes.