How to Get a Mortgage: Step-by-Step Guide

Buying a home can be a milestone moment in your life. But working through the process of buying a home — including how to get a mortgage — can feel overwhelming. This is especially true if you’re a first-time home buyer. 

With so many steps in the process, from strengthening your credit score to locking your rate, it’s common to feel unsure how to begin. The good news? You don’t have to navigate the mortgage process alone. 

This guide breaks down each step, helping you anticipate and understand what to expect. This includes how to prepare for the home-buying process so you can move forward with confidence. Whether you’re at the starting blocks or ready to apply, here’s what you need to know to get a home loan. 

Key takeaways 

• Conventional home loans generally require a credit score of 620 or higher, but 740 and above will help you unlock the best rates. Get your credit mortgage-ready by making on-time payments and paying down existing debt. 
• Shop around and compare mortgage lenders to find the best deal. Consider interest rates, APR, and loan terms. 
• Choose the right mortgage type for your needs. Fixed-rate mortgages offer stability, ARMs have lower initial rates, and FHA or VA loans cater to specific buyers. 
• Use the 28/36 rule to figure out how much home you can afford. Your mortgage payment shouldn’t exceed 28% of your gross income, and your total debt should stay under 36%. 
• Get preapproved by your preferred lender to strengthen your buying power and give sellers confidence in your offer. 

1. Strengthen your credit score 

The strength of your credit score is a key factor in not just getting a mortgage approval, but ensuring you receive the best available rates. Understanding how to get approved for a mortgage starts with your understanding your credit. A higher score helps you qualify for better loan terms, while a lower score can limit your options. 

Conventional mortgages typically require you to have a minimum credit rating of 620, but a score of 740 or higher will help you secure the best rates. FHA loans may allow scores as low as 500 to 580, but a larger down payment is often required. 

If you aspire to purchase a home in a few months or a few years, it’s never too soon to work on getting your credit mortgage-ready. Consider the following steps: 

• Check your credit report. Review your free credit report at AnnualCreditReport.com and dispute any errors. 
• Pay down debt. Keep credit card balances below 30% of your limit to improve your utilization ratio. 
• Make payments on time. Payment history has the greatest impact on your score, so avoid late payments. 
• Hold off on new credit accounts. Hard inquiries from new applications can temporarily lower your score. 
• Keep old accounts open. A longer credit history can improve your score. 

2. Consider your budget 

Before starting the mortgage process, it’s essential you determine how much home you can afford. Lenders use the 28/36 rule as a guideline: 

• Your monthly mortgage payment, including principal, interest, taxes, and insurance, should be no more than 28% of your gross monthly income (how much you earn before deductions). 
• Your total monthly debt payments, including your mortgage, credit cards, car loans, and other debts, should not surpass 36% of your gross income. 

Use a mortgage calculator to estimate what you can afford based on different down payments, loan terms, and interest rates. Factor in additional costs like property taxes, homeowners’ insurance, and potential HOA fees to help ensure your budget is realistic, giving you a clearer picture of how to get a mortgage that fits your financial situation. 

By understanding your financial limits upfront, you’ll be better prepared to find a home and loan that fits your budget. 

3. Explore your mortgage options 

When learning how to get a home loan, it’s important you understand the different types of mortgages available to you. The right loan depends on your financial situation, homeownership goals, and long-term plans. Here are some of the most common mortgage options: 

• Fixed-Rate Mortgage: The most common type of home loan, these mortgages lock in a single interest rate for the life of the loan, which is typically 15, 20, or 30 years. Fixed-rate mortgages are best for buyers who want predictable monthly payments. 
• Adjustable-Rate Mortgage (ARM): These loans start with a lower fixed rate for an initial period, then adjust periodically based on market rates. It’s best for buyers who plan to sell or refinance within a few years. 
• FHA Loan: These loans are backed by the Federal Housing Administration, allowing for a down payment as low as 3.5%. An FHA loan is best for first-time buyers or those with lower credit scores. 
• VA Loan: An option established for eligible military service members, veterans, and their spouses, these loans require no down payment and no private mortgage insurance (PMI). 

When comparing the different types of home loans, consider your budget, credit score, and how long you plan to stay in your home. 

4. Compare mortgage lenders 

Not all lenders are the same. Different lenders will offer slightly different rates, fees, and loan terms — variances that can add thousands in additional costs through the life of a loan — so shopping around is a critical step when considering how to get a mortgage. As you do, consider these tips: 

• Compare interest rates: Request loan estimates from multiple lenders to see how their rates and terms compare. 
• Review fees and APR: Beyond interest rates, also compare APR, which includes fees like origination fees, points, and other lender costs. This gives you a clearer picture of your total costs. 
• Check lender reviews: Have other customers had positive experiences with these lenders? Why or why not? 
• Consider loan options: Some lenders specialize in certain types of loans, such as FHA or VA loans. This could affect your approval and terms. 

Comparing mortgage lenders carefully to find one that best aligns with your financial needs is worth the effort, perhaps saving you thousands in the long term. 

5. Get preapproved for your loan 

Preapproval is key in securing a mortgage and kicking off your home-buying efforts. It helps ensure you understand your loan options and budget before house hunting. By securing preapproval early, you’ll have a clearer picture of what you can afford. 

AmeriSave offers a Certified Approval to help your offer stand out in a competitive market. Unlike a standard preapproval, Certified Approval thoroughly examines your financial situation and gives you verified buying power that shows sellers you’re a serious buyer and financially qualified to buy a home. To get a Certified Approval, you’ll need to provide: 

• Proof of income (i.e., pay stubs, tax returns) 
• Employment verification 
• Credit history check and score 
• Asset documentation (i.e., bank statements, down payment funds) 

Both steps serve important purposes in your homebuying journey: standard preapproval helps you understand your budget and options early in the process, while Certified Approval transforms you from just another potential buyer into a powerhouse with verified financing that gives sellers the confidence to accept your offer.  

6. Start house hunting 

Now the fun part — finding your dream home! 

With your preapproval in hand, you can start looking at homes within your budget and making serious offers. Work with a trusted real estate agent who understands local market trends and can provide home-buying tips specific to your situation. 

If you live in a competitive market, be prepared to act quickly — but don’t rush. Take time to evaluate each home’s condition, location, and potential for long-term value. When you’re ready, your agent will help you submit an offer and negotiate terms. 

7. Apply for your loan 

You’ve found the right home for you, and your offer was accepted. The next step in the mortgage process is to officially apply for your loan. During this step, your lender will require several financial documents to verify your ability to repay the mortgage. To apply, you’ll need: 

• Proof of income: Pay stubs, W-2s, and tax returns 
• Employment verification: Employer contact information or offer letter 
• Credit and debt information: Credit report and details on outstanding loans 
• Asset documentation: Bank statements and proof of down payment funds 
• Property details: Purchase agreement and home appraisal 

After you apply, the lender will review your financials, order an appraisal, and start underwriting your loan. At this point, avoid major financial changes like opening new opening new credit accounts or making large purchases. Once approved — this can take a few days to a few weeks — you’ll receive a loan commitment and move toward closing. 

8. Lock your rate 

Mortgage rates can fluctuate by the day, so locking it ensures you secure a stable interest rate before closing. A rate lock protects you from market increases, giving you peace of mind as you move through the mortgage process. Once your loan is approved, ask your lender about locking the best available rate for your loan term. 

AmeriSave offers a 90-day rate lock, allowing you to focus on closing without worrying about rate changes. This can save you money throughout the term of your loan and provide certainty in your monthly payments. 

9. Close on your new home 

The final step in the mortgage process is closing day — the moment you officially become a homeowner! 

At closing, you’ll review and sign all the necessary documents, including the loan agreement, title paperwork, and closing disclosure. Other things to expect on closing day include: 

• Final loan approval: The lender will confirm all your loan details before funding your loan. 
• Pay costing costs: These typically range between 2% and 5% of the home’s purchase price and may include lender fees, title insurance, and prepaid taxes. 
• Receive the keys: Once everything is signed and funds are transferred, the home is officially yours! 

When the paperwork is complete, you can move in and start the next chapter of your life. 

Our Mortgage Experts are here to help 

The mortgage process requires a good bit of preparation, but by following these steps, you’ll be well on your way to homeownership. From strengthening your credit to closing on your home, each stage helps you secure the ideal loan for you and your family. 

Even with careful planning, questions or challenges are likely to arise. You don’t have to navigate these challenges alone.  

At AmeriSave, our Mortgage Experts are here to guide you on how to get a mortgage, answer your questions, and help you overcome any hurdles along the way. Ready to take the next step? Get started today with AmeriSave and make your homeownership goals a reality. 

Frequently asked questions 

How do I qualify for a mortgage? 

Lenders consider your credit score, income, debt-to-income (DTI) ratio, and employment history. Most loans require a credit score of at least 620 and a DTI below 43%. To improve your chances for approval, pay down your existing debt, save for a down payment, and check your credit report for errors. 

Is it easy to get a mortgage?

Getting a mortgage is easier if you have a good credit score, steady income, and low debt. FHA loans offer flexible requirements for first-time home buyers. Being prepared with financial documents and working with a knowledgeable lender like AmeriSave can simplify the process. 

Where can I get a mortgage? 

You can get a mortgage from banks, credit unions, mortgage brokers, or online lenders like AmeriSave. Comparing rates, fees, and loan terms helps you find the best deal.