To secure a mortgage loan, start by improving your credit score above 700, as lenders prioritize borrowers with strong credit histories. Save for a down payment of at least 3% to 20%, depending on the loan type, and maintain a stable income with a debt-to-income (DTI) ratio below 43%. Secure pre-approval from multiple lenders, compare interest rates, and choose a fixed-rate or adjustable-rate mortgage based on long-term goals.

Secure mortgage loans require a credit score of at least 620, but scores above 760 qualify for the best rates, according to the Consumer Financial Protection Bureau (2023). A DTI ratio exceeding 43% increases default risk by 30%, as shown in Federal Reserve data (2022). Down payments below 20% typically require private mortgage insurance (PMI), adding 0.5% to 1.5% of the loan amount annually. Pre-approval saves time and strengthens offers, with 68% of sellers preferring pre-approved buyers, per Redfin (2023). Loan types matter: FHA loans require only 3.5% down, while VA loans offer zero down for military veterans. Lenders also assess employment stability, favoring those with two+ years in the same role.

For example, a borrower with a 750 FICO score, $50,000 annual income, and 35% DTI can qualify for a $300,000 loan at 4.25% interest (30-year fixed), assuming 20% down. Conversely, a 650 FICO score or 50% DTI may result in denial or higher rates. Data from the U.S. Census Bureau (2021) reveals that 44% of first-time buyers used mortgages with down payments below 20%, highlighting the importance of PMI and loan flexibility. Ultimately, securing a mortgage hinges on financial readiness, strategic planning, and navigating lender requirements effectively.