How to Apply for a Mortgage Loan

It’s an exciting time when you are ready to buy your first home (and an expensive one). Unless you have the cash to buy a house outright, you’re likely going to be taking out a mortgage to finance your purchase.

Applying for a mortgage doesn’t have to be scary—just follow these steps!

Check Your Credit

Before applying for your mortgage, you’ll want to check out your credit reports. Your credit rating will play a significant part in getting approved for a home loan and getting a good deal. You can start by pulling your reports from the three major credit bureaus (TransUnion, Experian, and Equifax). This website is the only one authorized by the federal government to provide you with a free credit report once a year.

Related: 580 Credit Score Home Loans

After you get your report, review them and check for any errors. Double-check your personal information and account history. Dispute any inaccuracies with the credit bureau—they must respond within 30 days.

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Improve Your Credit

If your credit is in excellent shape, great! If not, here’s how to improve it. Lenders generally prefer scores above 620, but government-backed loans may accept lower scores.

• Payment history accounts for 35% of your score. Make payments in full and on time.
• Keep your credit utilization low.
• Avoid opening new credit lines or making large purchases before applying.

Decide on a Loan

Next, evaluate your loan options:

Government-backed vs. Conventional

The most common types of mortgages include:

• Government-backed loans: FHA, VA, or USDA loans are ideal if you have limited savings or lower credit.
• Conventional loans: Require higher credit and down payments, but may offer better terms long-term.

Variable vs. Fixed Interest Rates

Variable rate loans start lower but fluctuate with the market. Fixed rates offer predictable monthly payments.

Short vs. Long Term

• Short-term (15-20 years): Higher payments, less interest.
• Long-term (30 years): Lower payments, more interest over time.

Related: What to Know About Hybrid Loans

Gather Your Paperwork

Before applying, get your documents ready:

• Income verification: Tax returns, W-2s, pay stubs, or 1099s for self-employed borrowers.
• Proof of assets: Bank statements, retirement or investment accounts.
• List of liabilities: Credit card balances, student loans.
• Other documents: Ask your lender for a complete list.

Related: Beginner House Buying Checklist

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Find the Best Mortgage Rates

Don’t rush. Compare rates! The right lender can save you thousands. Consider:

• Interest rate
• Mortgage insurance
• Origination fees
• Closing costs

Even small rate differences add up.

Looking for the best lenders? Contact Mares Mortgage—we’re here to help!

Get Pre-Approved

Buying a home is exciting, but can be stressful. Get pre-approved to reduce uncertainty and move fast when you find the right property. Lenders will estimate what you can borrow based on your financials.

Want to get pre-approved in one day? Apply now with Mares Mortgage!

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