To secure a mortgage, start by checking and improving your credit score, as lenders prioritize borrowers with scores above 620. Save for a down payment (20% for conventional loans to avoid private mortgage insurance) and closing costs (typically 2-5% of the loan amount). Secure pre-approval from multiple lenders to strengthen your offer in competitive markets. Compare loan types (e.g., fixed-rate vs. adjustable-rate) and terms, and ensure your debt-to-income ratio stays below 43%.

A strong credit score is critical because it directly influences interest rates. For example, a FICO score of 740+ qualifies for the lowest rates, while scores below 620 may result in denial or high costs. Data from the Consumer Financial Protection Bureau (2023) shows that 63% of rejected mortgage applications were due to insufficient credit scores or documentation. A 20% down payment reduces loan default risk by 30% (Federal Housing Finance Agency, 2022), as it minimizes equity loss during price declines. Pre-approval increases offer acceptance chances by 50% (Zillow, 2023), as sellers view pre-approved buyers as more serious. Lenders also prioritize debt-to-income ratios below 43% because borrowers with ratios above this threshold are 2.5x more likely to default (Urban Institute, 2023). Combining these steps maximizes approval odds and secures favorable terms.