How To Get a Mortgage: Step-By-Step Process

Your home may be the biggest purchase you'll ever make and, if you’re like most people, you’ll need a mortgage to buy it. A mortgage is a loan used to finance a home purchase — instead of paying in full upfront, you can finance the purchase over time via monthly payments. We’ll cover the step-by-step process to get a mortgage, including how to choose the right type, getting pre-approved, which documents you’ll need, and whether you're ready to move forward.

1. Improve your credit

Pay extra close attention to your credit as soon as you start planning to purchase a home.

“Your mortgage journey actually starts with credit preparation long before you ever apply for a mortgage,” says Jessica Hegge, co-founder of Dr. Home Finance. "You can often move into a better rate tier, save on required reserves, or qualify for programs not available to you at a lower score by pulling your credit three to six months before you apply and boosting your score just a little.”

Take these steps to improve your credit to qualify for a mortgage or get a lower rate:

• Check your credit report: Get a free copy of your credit report from Annualcreditreport.com. Review it carefully, disputing any errors with the credit bureaus and the companies that supplied the information.
• Pay bills on time: Payment history is the most important factor affecting your credit score, so make all your payments on time.
• Pay down debt: Paying off debt has multiple benefits. One, you can reduce your credit utilization ratio — this measures how much of your available credit you’re using, which is a key factor in your credit score. Lenders also review your debt-to-income ratio, or DTI. A lower DTI presents a lower risk to lenders and could help you qualify for a larger loan amount.
• Avoid applying for new credit: Applying for a new credit card or loan can temporarily lower your credit score. If you’re getting ready to apply for a mortgage, limit or avoid applications for new credit.

2. Choose a mortgage type

There are five general types of mortgage loans, each with different eligibility criteria, benefits, and restrictions. Here’s a brief overview:

• Conventional loan: Most buyers choose conventional loans. You generally need good credit and at least a 3% down payment to qualify, but you have few limits on the types of properties you can buy.
• Jumbo loan: Jumbo loans are for homes that cost too much to finance with a conventional loan. In 2026, you’ll need a jumbo loan to finance more than $832,750 (in most of the U.S.). Because these are larger loans, eligibility requirements are stricter.
• FHA loan: FHA loans are backed by the Federal Housing Administration and designed to offer lower down payments and closing costs. FHA loans are more restrictive than conventional loans regarding the types of properties you can buy.
• USDA loan: Backed by the U.S. Department of Agriculture, USDA loans are for low- and moderate-income borrowers buying a home in a designated rural area. USDA loans may allow you to buy a home with 0% down.
• VA loan: VA loans help active-duty military members, reservists, veterans, and their families purchase homes with as little as 0% down. Like other government-backed loans, there are limits on the types of properties you can buy with a VA loan.

3. Get pre-approved

Pre-approval should be your first step before looking at homes. This process involves a lender closely reviewing your financial situation to determine how much you can borrow. It helps you limit your search to properties that fit your budget and gives you a competitive edge. A pre-approval letter shows sellers you’re likely to qualify for a loan, potentially making your offer more appealing than an offer from someone without preapproval.

Choose a handful of lenders to get pre-approved with. Depending on the lender, you can do this online, in person, or over the phone. You’ll need to provide your personal and financial information, such as recent pay stubs, W-2s or tax returns, bank statements, and proof of assets. Each lender will perform a hard credit check, but as long as your preapprovals are within 45 days, multiple hard inquiries will only count as one on your credit report.

Once pre-approved, compare quotes to identify the best and potentially use them as leverage to get other lenders to offer a better deal. Keep in mind that pre-approvals have an expiration date, such as up to 90 days. Ask each lender how long its pre-approval letter is good for.

Note that pre-approval and prequalification are not the same. Prequalification uses a soft credit pull and self-reported information to quickly estimate what you might qualify for. Pre-approval, on the other hand, is more thorough, involves a hard pull, and is much more valuable from a seller’s perspective.   

4. Gather additional documentation and apply

Once you’ve found a home and the seller accepts your offer, you’ll need to supply additional documentation to formally apply for a mortgage. Here’s a general overview of what you may need:

Proof of income:

• Two most recent pay stubs
• Two most recent W2 forms
• Two most recent tax returns
• 1099 forms
• A Social Security award letter
• Profit and loss statements
• Business tax returns

Asset statements:

• Checking account statements
• Savings account statements
• Certificates of deposit
• Bonds
• Retirement accounts
• Investment accounts
• Business accounts

Other documents: 

• Photo ID
• Divorce papers
• Gift letter 
• Bankruptcy documents
• Proof of rent payments
• Employer info for past 2 years
• Addresses for past 2 years
• Ratified sales contract
• Social Security card or ITIN
• Business license

Follow your lender's step-by-step instructions and fill out each section of the application completely and accurately. Incomplete or incorrect information can delay the application and underwriting process.

5. Go through the underwriting process

After you submit your application, the lender will do a deep dive into your finances to make sure you and your chosen property are eligible for a loan.

“To help underwriting and closing go smoothly, buyers should be organized and upfront from the beginning,” suggests Steve Parangi, manager at Alpine Mortgage Services. Parangi also warns against providing incomplete information, such as partial screenshots or documents with missing pages.

The lender will order a home appraisal to assess the value of the home. This ensures the lender isn’t financing a home for more than it’s worth.

6. Close on the mortgage 

If the lender approves your application, you’ll receive a closing disclosure at least three business days before your scheduled closing date. Review it to confirm your loan amount, interest rate, estimated monthly payment, closing costs, loan terms, and other details. 

On your closing date, you’ll sign all of the necessary paperwork, pay closing costs and your down payment, and officially close on your new home.

Are you ready to apply for a mortgage?

Since mortgage eligibility requirements vary by loan type, it can be hard to know if you’re ready to apply. Make sure you meet the following general minimum qualifications. The higher your credit score and the lower your DTI, the better.

In addition to these benchmarks, you should have an emergency fund before buying a home. If you deplete your savings to cover closing costs and a down payment, for example, you could be in trouble if your furnace needs replacing.

What to do if you’re not approved for a mortgage

If you’re not approved for a mortgage, don’t panic, and don’t immediately apply with another lender.  Instead, talk to your lender to see why you didn’t get approved.

“A good lender should be able to provide the borrower a plan for approval which may mean paying down debt, improving credit, saving more money, adding a qualified co-borrower or waiting until a recent credit event is far enough in the past,” says Steve Parangi.