To secure a mortgage, first assess your credit score and save for a down payment (typically 3-20%). Secure pre-approval from a lender, compare loan types (e.g., conventional, FHA, VA), and submit a formal application with documentation like pay stubs, tax returns, and bank statements. Lenders evaluate debt-to-income ratios (ideally below 43%) and property appraisals before finalizing approval.

The process prioritizes credit health and financial readiness to minimize default risk. A Fannie Mae study found that borrowers with scores above 740 secure lower interest rates (e.g., 3.125% vs. 4.125% for scores below 620). FHA loans require a 5.5% down payment, while VA loans offer zero-down options for eligible veterans, reducing barriers to homeownership. In 2023, 68% of homebuyers used mortgages, with average loan amounts exceeding $400,000 (Federal Housing Finance Agency). Pre-approval increases purchasing power and accelerates offer acceptance, as 89% of sellers prefer pre-approved buyers (National Association of Realtors). Lenders also prioritize stable employment and low debt-to-income ratios to ensure repayment capacity, aligning with guidelines from the Consumer Financial Protection Bureau. These steps collectively reduce borrowing costs and enhance approval likelihood.