Bottom line: Getting a mortgage takes 30–60 days from application to closing. The process is document-intensive but predictable. The biggest risk to approval is changing your financial profile between application and closing — no new debt, no job changes, no large deposits without paper trails.
A mortgage is a secured loan using your home as collateral. The process from "I want to buy a house" to "I have a mortgage" involves six distinct phases. Understanding each one prevents the surprises that derail closings.
Step 1: Check and Improve Your Credit
Your credit score determines your interest rate tier. Check all three bureaus before applying. Even a 20-point improvement can move you into a better rate tier.
Minimum requirements by loan type (approximate):
| Loan type | Minimum credit score | Minimum down payment |
|---|---|---|
| Conventional | 620 | 3% |
| FHA | 580 (3.5% down) / 500 (10% down) | 3.5% |
| VA | No minimum (lenders typically 580+) | 0% |
| USDA | 640 | 0% |
| Jumbo | 700–720 | 10–20% |
If your score is below 700, spend 3–6 months paying down balances and clearing errors before applying. The rate difference between 680 and 740 on a $400,000 mortgage can exceed $100/month.
Step 2: Calculate What You Can Afford
Lenders use two debt-to-income (DTI) ratios:
Front-end DTI: Monthly housing payment (PITI — principal, interest, taxes, insurance) ÷ gross monthly income. Most lenders want this below 28–31%.
Back-end DTI: All monthly debt payments (housing + car + student loans + credit cards) ÷ gross monthly income. Conventional loans typically require below 43–45%; FHA allows up to 50% in some cases.
Example: $8,000/month gross income. Max housing payment at 28%: $2,240. At 6.5% on a 30-year loan, $2,240/month supports roughly a $355,000 mortgage — or about $390,000 purchase with 10% down.
Step 3: Get Preapproved (Before You Shop)
Preapproval is a lender's conditional commitment to lend you a specific amount. It requires a full application, income and asset verification, and a hard credit pull. A preapproval letter:
- Shows sellers you are a serious buyer
- Establishes your price ceiling
- Identifies problems (income gaps, credit issues) before they delay closing
Preapproval is not prequalification. Prequalification is a quick estimate based on self-reported information; preapproval is a verified commitment.
- Do not make any major financial moves between application and closing: no new credit cards or loans, no job changes, no large unexplained deposits into your bank accounts, no large purchases. Lenders re-verify your credit and employment shortly before closing — any change can trigger delays or denial.
- Shop multiple lenders during preapproval. Mortgage rate quotes vary meaningfully across lenders for identical borrowers. Multiple mortgage applications within a 14–45 day window count as one credit inquiry for scoring purposes.
- The Loan Estimate you receive within 3 business days of application is standardized by federal law — compare the APR (not just the rate) and the 'Total Loan Costs' section across lenders. These are the closest to apples-to-apples comparisons available.
Step 4: Find the Right Loan Type
Conventional loans: Not government-backed. Best rates for borrowers with 700+ credit and 20% down. Below 20% down requires PMI.
FHA loans: Government-backed through the Federal Housing Administration. Lower credit requirements, lower down payment — but require mortgage insurance premium (MIP) for the life of the loan (with less than 10% down).
VA loans: For eligible veterans and active military. No down payment required, no PMI, competitive rates. The most valuable benefit available to those who qualify.
USDA loans: For rural and some suburban properties. No down payment, income limits apply.
Jumbo loans: For loan amounts above conforming limits ($806,500 in most areas in 2026). Stricter underwriting, higher credit requirements.
Step 5: Submit the Full Application
Once you have a purchase contract, submit your full mortgage application. Required documents:
- Government-issued photo ID
- Social Security number
- Two years of W-2s and federal tax returns
- 30 days of pay stubs
- Two to three months of bank statements (all accounts, all pages)
- Statements for investment accounts and retirement accounts
- Documentation of any large deposits
- Landlord contact information (if renting currently)
- Gift letter (if part of down payment is a gift)
Self-employed borrowers additionally need: two years of business tax returns, year-to-date profit/loss statement, business bank statements.
Step 6: Underwriting, Appraisal, and Closing
Underwriting: The lender's underwriter reviews everything and issues one of: approved, approved with conditions (most common), suspended (needs more information), or denied. Conditional approvals require you to provide additional documentation — respond quickly to avoid delays.
Appraisal: An independent appraiser visits the property and confirms its market value supports the purchase price. If the appraised value is below the purchase price, you must negotiate the price down, pay the difference in cash, or walk away (if your contract has an appraisal contingency).
Clear to close: Underwriting is satisfied; you receive a Closing Disclosure at least three business days before closing with final loan terms.
Closing: You sign the loan documents, pay closing costs and down payment, and receive the keys. The process takes 1–3 hours.
Mortgage requirements, loan limits, and rates change frequently. Verify current limits and requirements with lenders before applying.
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