Quick 4‑step summary (featured‑snippet style): 1) Check your finances and credit, 2) get preapproved, 3) apply after you find a home, 4) close when underwriting and the appraisal are complete.
“How to get a mortgage” means the series of steps a buyer follows to borrow money secured by a home: getting qualified/preapproved, shopping, submitting a formal loan application, passing underwriting and an appraisal, then signing final documents at closing so the lender funds the loan.
Most readers—first‑time buyers, renters researching, low‑credit buyers, immigrants, refinancers, investors, and content creators—ask this to learn whether they qualify, how much they can afford, what documents are required, how long it will take, which loan type fits them, and what costs to expect. They want a clear mortgage process step by step and practical next steps they can act on.
Prequalification is an informal estimate from a lender based on self‑reported income, assets and debt. It’s quick and gives a ballpark of how much you might borrow, but it’s not a guarantee. Use it to set a realistic search range.
Preapproval is a conditional offer after the lender verifies key documents (credit report, income, assets). It takes longer than prequalification but carries more weight with sellers. To get it, complete a short application and provide pay stubs, W‑2s or tax returns and bank statements.
With a preapproval you can confidently make offers within your approved amount. Sellers and agents treat preapproved buyers more seriously, especially in competitive markets.
After your offer is accepted, submit a full mortgage application. The lender will give you a Loan Estimate within three business days showing estimated rates, monthly payments and closing costs.
Underwriters verify your income, employment, credit, assets and the property’s value. They review documentation, confirm the appraisal supports the purchase price, and may request additional paperwork or explanations.
Closing is when you sign final loan documents, pay closing costs and down payment, and the lender funds the loan. Once recorded, you receive the keys and begin monthly payments.
Requirements vary by lender, but common benchmarks are: conventional loans — typically 620+; FHA loans — as low as 500 with higher down payment but 580+ for the 3.5% down option; VA loans — flexible (many lenders prefer 620+); USDA loans — often 640+ for automated approval. Individual lenders set overlays, so scores above these ranges get better rates.
DTI compares your monthly debt payments to gross monthly income. Lenders look at front‑end DTI (housing costs) and back‑end DTI (total debts). A common guideline is ≤36% preferred, up to ~43–50% allowed with compensating factors depending on loan type.
Down payments vary: conventional low‑down programs can start at 3% (for qualified buyers), FHA is 3.5% with 580+ credit, VA and USDA may offer 0% down for eligible buyers, and jumbo loans typically require 10–20% or more. A 20% down payment avoids private mortgage insurance (PMI) on conventional loans.
If you fall short: repair credit by paying down balances and correcting errors, save or use gift funds for a down payment (with proper gift letters), add a co‑borrower with strong credit, explore FHA/VA/USDA or local down‑payment assistance programs, or wait and improve qualifying numbers before applying.
Conventional loans are not government‑backed. Pros: competitive rates for strong credit, options to avoid PMI with 20% down. Cons: stricter credit and DTI requirements. Typical buyers: those with steady income and at least fair credit.
FHA loans are government‑insured and popular with first‑time homebuyers. Pros: lower credit thresholds and smaller down payments. Cons: mortgage insurance required for the life of the loan unless refinanced to a conventional loan.
VA loans offer 0% down and no PMI to eligible veterans and active service members. They have competitive rates and flexible underwriting but require a Certificate of Eligibility.
USDA loans provide 0% down financing for eligible rural properties and income‑qualified borrowers. They include a guarantee fee and have location and income restrictions.
Jumbo loans exceed conforming loan limits and require higher credit scores, larger down payments (often 10–20%), and stronger reserves due to higher risk.
Fixed‑rate mortgages keep the same interest rate for the loan term — choose when you plan to stay long‑term and prefer predictable payments. Adjustable‑rate mortgages (ARMs) start with a lower rate for a set period and then adjust — useful if you expect to sell or refinance before adjustments or want a lower initial rate.
Many states and cities offer first‑time homebuyer programs, grants, or low‑interest second mortgages for down payment assistance. Check your state housing agency, local municipality, and HUD‑approved housing counselors for options.
Interest rates depend on market conditions (Treasury yields), your credit score, loan term and type, down payment amount, and lender pricing. Better credit and larger down payments usually get lower rates.
The interest rate is the cost to borrow expressed as a percentage; APR (annual percentage rate) includes the interest rate plus lender fees and some closing costs, so APR is a better single‑number comparison of total loan cost.
Closing costs typically run about 2–5% of the loan amount and can include: lender origination fees, appraisal, title search and insurance, attorney fees, recording fees, prepaid interest, and escrow deposits for taxes and insurance.
PMI is usually required on conventional loans with less than 20% down. You can avoid PMI by making a 20% down payment, using a VA loan (no PMI), getting a piggyback second loan (complex), or refinancing once you reach 20% equity.
Monthly housing costs include mortgage principal and interest plus property taxes and homeowners insurance (often paid via escrow). If your property is in a community association, add HOA fees. Budget for maintenance and unexpected repairs.
Prequalification: same day to a few days. Preapproval: 1–7 days. From application to closing: commonly 30–45 days, but can be faster or slower—underwriting complexity, appraisal delays, and document gathering affect timing.
Organize digital copies of key documents, respond promptly to lender requests, avoid large purchases or new credit, and choose lenders who offer e‑docs and digital verification tools to reduce delays.
Banks and credit unions may offer relationship pricing; mortgage brokers shop multiple investors on your behalf; online lenders often streamline paperwork. Compare at least three lenders, including a local credit union or community bank.
Request Loan Estimates from each lender to compare interest rate, APR, estimated closing costs and points. Look past the headline rate to APR and total closing costs to see the real cost over time.
Do rate shopping within a focused window (typically 14–45 days depending on credit model) so multiple credit pulls count as one inquiry for scoring purposes. Get Loan Estimates before authorizing full credit pulls when possible.
Watch for lenders who pressure you to act quickly, change terms near closing, charge unexplained fees, or push loan products you don’t understand. Avoid "no‑doc" promises that skip verification—these can lead to denial or bad terms.
Create a targeted savings plan, reduce discretionary spending, use tax refunds, accept documented gifted funds from family (with a gift letter), or apply for local down‑payment assistance and first‑time buyer grants.
Co‑borrowers with stronger credit can help qualify, but all parties are responsible for payments. For non‑traditional income (gig/self‑employed), lenders may accept bank‑statement loans or two years of tax returns and profit‑and‑loss statements.
If you buy now with higher rates or private mortgage insurance, plan to refinance when your credit score, equity or market rates improve to lower monthly cost or remove PMI.
Ana (teacher) and Marcus (warehouse supervisor) rent an apartment and decide to buy. Month 0: they check credit scores (Ana 680, Marcus 640), review budgets and use an online mortgage calculator to estimate affordability. Month 1: they get prequalified by two lenders and then seek preapproval with a local credit union. They gather pay stubs, W‑2s and 3 months of bank statements. The credit union issues a preapproval for $320,000.
Month 2: they find a 3‑bed home listed at $310,000. Their agent advises a competitive offer with a mortgage contingency. Offer accepted. Month 2–3: they submit a formal loan application, order appraisal and title work, and respond quickly to underwriter requests. Closing is scheduled for day 40 and occurs as planned. They pay 6% down (from savings plus a documented gift from a parent) and start mortgage payments the next month.
The couple used the idea of “how to get a mortgage” to map practical tasks: check credit, save a down payment, choose a lender that offered competitive rates and local underwriting familiarity, and pick an FHA vs conventional option. Because their credit and down payment allowed better terms with a conventional loan, they chose that route to avoid ongoing FHA mortgage insurance.
They’d started saving earlier for reserves (to meet lender reserve requirements) and shopped one more lender to compare closing costs. They’d also have corrected a minor credit error that might have further reduced their rate.
A mortgage is a secured loan for buying real estate; the property serves as collateral. You repay principal and interest over a set term—failure to pay can lead to foreclosure.
Prequalification is a quick estimate based on self‑reported data; preapproval is a verified conditional loan offer after documentation and credit checks.
Typical minimums: conventional 620+, FHA 500–580+ depending on down payment, VA and USDA have different rules. Down payments range from 0% (VA/USDA) to 3–3.5% (some conventional/FHA) to 20% to avoid PMI.
Usually 30–45 days after full application; preapproval can take days and prequalification is often immediate.
Closing costs are lender and third‑party fees paid at closing, commonly 2–5% of the loan amount. They include appraisal, title insurance, origination and prepaid items.
Improve your credit score, increase your down payment, shorten the loan term, shop multiple lenders, and consider paying points to lower the rate if it financially makes sense.
Yes—FHA, VA, USDA loans, and many state/local down‑payment assistance programs exist. Contact your state housing agency or a HUD‑approved housing counselor to find local options.
Gather complete financial documents, avoid major purchases or new credit during the process, pay down revolving debt, and disclose any unusual income or credit events early.
Start with your state or city housing agency website and HUD’s list of housing counseling agencies. Local credit unions and community nonprofits also run down‑payment assistance and educational workshops.
Recommended page tools: an interactive mortgage calculator, a downloadable preapproval checklist PDF, and a lender comparison worksheet to record Loan Estimates (APR, fees, points) side‑by‑side.
Next step: get preapproved with a lender, contact a HUD‑approved counselor if you need free guidance, or download the preapproval checklist to gather your documents.
How to get a mortgage means preparing your finances, getting preapproved, finding a home, applying, passing underwriting and appraisal, and closing—usually a 30–45 day process after application. If you’re ready now: gather pay stubs, tax returns and bank statements, shop at least three lenders for Loan Estimates, and get preapproved so you can make strong offers. If you’re not ready, focus first on credit fixes and saving a down payment or researching assistance programs.
