To secure a home loan after the down payment, focus on maintaining a strong credit score, reducing existing debt, and documenting stable income. Pre-approval from a lender helps streamline the process, while shopping for competitive interest rates ensures favorable terms. If the down payment is less than 20%, private mortgage insurance (PMI) may be required to offset lender risk.

Maintaining a credit score above 740 significantly improves loan approval chances, as lenders view higher scores as lower risk. For example, Fannie Mae’s 2023 data shows loans to borrowers with scores ≥740 had a 98% approval rate, compared to 72% for scores below 620. A debt-to-income (DTI) ratio below 43% is ideal, as the Federal Reserve reports lenders increasingly reject applications above this threshold. Documentation of consistent income, employment history, and assets is critical, as 65% of rejected loans in 2022 cited incomplete paperwork, per the Mortgage Bankers Association. PMI typically costs 0.5–1.5% of the loan amount annually, which impacts affordability. Consulting a loan officer to optimize these factors ensures alignment with lender criteria and market conditions.