To secure a loan for purchasing a previously owned home, follow these steps: First, obtain a mortgage pre-approval from multiple lenders to determine your budget and strengthen your offer. Second, ensure your credit score is at least 620 (ideally 740+) to qualify for favorable interest rates. Third, save for a down payment of 5-20%, with lower down payments requiring private mortgage insurance (PMI). Finally, compare loan types (e.g., conventional, FHA, VA) and terms (e.g., 15

or 30-year fixed) to balance monthly payments and interest costs.

This approach works because mortgage lenders prioritize borrowers with stable credit, sufficient savings, and clear debt-to-income ratios. A higher credit score reduces default risk, as shown by data from the Consumer Financial Protection Bureau (CFPB): borrowers with scores above 740 pay 0.5-1.0% less in interest compared to those below 620. Additionally, a 20% down payment eliminates PMI, saving an average of $50-$100 monthly for a $300,000 loan, according to Fannie Mae. Pre-approval also increases purchasing power, as 89% of sellers prefer offers with financing pre-arranged (National Association of Realtors, 2023). Combining these factors minimizes borrowing costs and maximizes affordability.