How to get a mortgage in 7 steps
By
Erik J Martin
Contributed by Tom McLean
Jun 20, 2025
•8-minute read

Getting a mortgage may feel overwhelming. There are a lot of moving parts, and it can take several weeks. Knowing what’s ahead and being prepared can give you more confidence and control.
Here are 7 steps to getting a mortgage.
1. Make sure you can afford a mortgage
You’ll want to review your finances to ensure you can afford a mortgage and own a home. You’ll need to save enough to cover the up-front costs of buying a home, such as the down payment and closing costs.
You’ll also need to make sure you can afford the monthly payment and the ongoing costs of owning a home, which include:
- Property taxes
- Homeowners insurance
- Utilities
- Maintenance and repairs
- Furnishings and decor
- Appliances
- Lawn care and landscaping
- HOA fees, if applicable
Review your credit report
Take the time to carefully review your credit reports and credit scores well in advance of applying for a mortgage. Dispute any inaccuracies or errors and work to improve your credit score if it could use a boost.
You can use the Rocket Mortgage® Home Affordability Calculator to estimate how much house you can afford.
2. Decide on a loan type and lender
The most common mortgage in the United States is the conventional loan. This is a private loan that comes in two types: conforming and non-conforming. Conforming loans meet specific standards, including a maximum loan amount for the area where the home is located and a minimum down payment of 3%. The most common type of non-conforming mortgage is the jumbo loan, which exceeds the maximum loan amount for a conforming loan.
The United States government also supports mortgage programs for specific borrowers. The most common are:
- Federal Housing Administration loans. FHA loans are for borrowers with lower credit scores. They require a down payment of 3.5% with a minimum credit score of 580 or a down payment of 10% with a credit score of 500 – 579.
- Veterans Affairs loans. VA loans are available only to active-duty military personnel, veterans, and their surviving spouses. VA loans require no down payment.
- U.S. Department of Agriculture loans. USDA loans are available to low- to moderate-income borrowers purchasing a home in a designated rural area. USDA loans also require no down payment.
All loan types usually allow you to choose between a fixed and adjustable interest rate and a 15- or 30-year repayment term.
Each loan also has its own requirements for a minimum credit score, maximum debt-to-income ratio, and whether you’ll have to pay for mortgage insurance.
Even with a government-backed loan, you’ll apply for your mortgage with a private lender. Not all lenders are created equal. Some charge less, some have more flexible terms, and some boast better customer service. To find the right lender for you and get the best deal possible on your mortgage, it pays to shop around. A key factor to consider is a loan’s annual percentage rate, or APR, which includes both the mortgage interest rate and any additional fees you must pay.
3. Get mortgage preapproval
When you’ve saved enough for a down payment and closing costs and are ready to start shopping for a home, it’s time to get mortgage preapproval.
You’ll submit some financial documents to your lender, which will review them and provide a letter estimating how much it expects you’ll qualify to borrow. A preapproval letter is usually valid for 60 – 90 days and shows real estate agents and sellers that you’re ready to buy.
4. Start touring homes
This is the fun part, where you can visit open houses and try to find a home that fits your needs and budget.
Find a real estate agent
A buyer’s real estate agent is a licensed professional who has the experience and knowledge to help you find and buy a home. An agent looks out for your best interests, shows you properties for sale, enables you to make offers, and negotiates on your behalf. Hiring an agent you trust and communicate well with makes home shopping much less stressful. Your agent also can connect you with valuable resources, such as real estate attorneys, title companies, appraisers, home inspectors, and lenders.
Create a list of wants, needs, and must-haves
Take the time to create a list of the features you want versus what you need and what you must have in your new home. Work with your real estate agent to organize this list.
“Start by figuring out what really matters to you. Think about things like the number of bedrooms, yard space, commute time, and nearby schools,” says David Kindness, a personal finance expert and Certified Public Accountant in San Diego. “Talk with your agent about your priorities. You might not find a home with everything on your list, but knowing what you care about most will help you make a better choice.”
5. Make an offer
When you’ve found a home that works for you and the price is right, it’s time to put in your bid. There are a few steps in making an offer:
- Determine a fair price based on your budget, your agent’s advice, and the overall market conditions.
- Pick your contingencies, which are conditions that must be met for the sale to go through. Common contingencies include a satisfactory home inspection, your ability to get a mortgage, the home appraising for a certain amount, and selling your current home.
- Decide on an earnest money deposit. This is a fee you offer the seller to show you’re serious about buying their home. When the sale closes, the earnest money is applied to the down payment or closing costs. If something goes wrong and the sale is canceled for a reason not covered by a contingency, the seller keeps the earnest money as compensation for their time.
- Officially submit your offer. Work closely with your agent to prepare and send the formal offer to the seller.
- Be prepared to negotiate. Understand that the seller may not accept your initial offer. They may decline or make a counteroffer. Strategize with your agent if you need to revise your bid.
When you and the seller agree on the terms and contingencies of the sale, you’ll make it official by signing a purchase and sale agreement.
6. Apply for your mortgage
Now, you’ll officially apply for a mortgage, submitting all your financial documentation for underwriting. You may be able to complete this application online, in person, or by mail, depending on the lender.
Be prepared to upload or provide financial documents such as bank statements, recent pay stubs, and income tax returns. Once the lender has your documents, they will review everything carefully.
Within 3 business days of receiving your complete application, the lender will provide you with a Loan Estimate, which forecasts all the details of your loan and your closing costs.
Here’s what lenders usually look for in a mortgage application:
Income and job history
There is no set income threshold required to purchase a home. However, your mortgage lender needs to know that you have sufficient cash coming in to repay the loan.
To verify your income, your lender will review:
- Your employment history
- Your monthly household income
- Any other income you receive, such as child support or alimony payments.
They will use several documents to verify your income, such as:
- At least 2 years of income tax returns
- Your two most recent W-2s and recent pay stubs
- 1099 forms or business tax returns if you’re self-employed
- Divorce decrees, child support orders, and any other legal documentation that confirms that you’ll continue to receive payments for at least another 3 years
- Legal documentation that proves you’ve been receiving alimony, child support, or other types of income for at least 6 months, if applicable
Credit score
Your credit score plays a significant role in getting a mortgage. A high credit score indicates to lenders that you consistently pay your bills on time and manage your credit effectively. A higher credit score can give you access to more lender options and lower interest rates.
A low credit score makes you a riskier borrower because it may show missed payments, defaults, or bankruptcies. If you have a lower score, it’s a good idea to try to boost your credit score before you apply for a loan.
The minimum credit score for a conventional loan is 620. For a government-backed loan, you usually need a credit score of at least 580, but that can vary depending on which loan you choose.
Explaining extenuating circumstances
If you had an extenuating circumstance that damaged your credit, it’s a good idea to explain this to your lender and provide documentation.
For example, if you missed a few payments on your credit card bills due to a medical emergency, you may want to give your lender a copy of your medical bills. This proves to your lender that the bad marks on your report were the result of a one-time instance rather than a pattern.
DTI ratio
Your DTI ratio indicates the percentage of your income allocated to debt payments. To calculate your DTI ratio, add up your minimum monthly debt payments, divide it by your gross monthly income, and multiply by 100 to get a percentage.
The debts that factor into your DTI ratio include credit cards, student loans, and auto loans. Expenses such as groceries or subscriptions can be excluded.
Typically, for a conventional mortgage, a DTI ratio of 50% or less is the benchmark. However, many government-backed loans have higher thresholds.
Assets
Your lender will review your assets, which include any type of account that allows you to withdraw cash, such as checking, savings, and retirement accounts.
Your lender might ask you to provide:
- Up to 60 days’ worth of account statements that confirm the assets in your checking and savings accounts
- The most recent statement from your retirement or investment account
- Documents for the sale of any assets you got rid of before you applied, such as a copy of the title transfer if you sold a card
- Proof and verification of any gift funds deposited into your account within the last 2 months
Your lender will request additional information about any outstanding debts you owe, such as a student loan or an auto loan. Cooperation with your lender makes the mortgage loan process easier, so be sure to provide any requested information as soon as possible.
Property type
When applying, you will have to disclose if the home you’re buying will be your primary residence or an investment property. Primary residences are viewed as less risky investments for lenders because you’re less likely to default or sell in a short period. Paying the loan on an investment property, on the other hand, often takes a backseat to paying the mortgage on the primary residence if the owner encounters financial hardship. To balance the risk, lenders likely will require a larger down payment and a higher credit score for an investment property mortgage.
Underwriting
Underwriting is the process of reviewing your financial information and personal details to determine whether to approve your mortgage. An underwriter will review your application and documents, including your earnings, credit, debt, and the type of property you want to buy. The underwriter may request additional documents or ask you to explain items such as an unusual bank deposit.
The time it takes to close on a house can range anywhere from a few days to a few weeks. Underwriting typically takes between 30 and 45 days.
Closing Disclosure
At least three business days before closing, your lender will provide your Closing Disclosure. This document finalizes the details of your loan, including the monthly payment, down payment amount, interest rate, and all closing costs. Check that your Closing Disclosure matches your Loan Estimate and ask questions if anything differs.
7. Close on your new home
At closing, you’ll have a chance to ask any last-minute questions about your loan. Remember to bring your Closing Disclosure, a valid photo ID, your down payment, and a check for your closing costs. Once you sign the documents that finalize your loan and transfer legal ownership, you’re officially a homeowner.
The bottom line: The mortgage process takes time
Obtaining a mortgage to purchase a home requires careful planning and patience. Making sure you understand how a mortgage works and being prepared for the steps involved in getting one can make the process much easier.
Want more guidance or information? Talk to a lending expert at Rocket Mortgage who can help you navigate this journey.

Erik J Martin
Erik J. Martin is a Chicagoland-based freelance writer whose articles have been published by US News & World Report, Bankrate, Forbes Advisor, The Motley Fool, AARP The Magazine, USAA, Chicago Tribune, Reader's Digest, and other publications. He writes regularly about personal finance, loans, insurance, home improvement, technology, health care, and entertainment for a variety of clients. His career as a professional writer, editor and blogger spans over 32 years, during which time he's crafted thousands of stories. Erik also hosts a podcast (Cineversary.com) and publishes several blogs, including martinspiration.com and cineversegroup.com.
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