Buying your first home is a huge milestone — and getting a mortgage is one of the biggest steps in the journey. But the process can feel complicated and intimidating. From credit checks to closing costs, there’s a lot to consider. This guide will walk you through how to get a mortgage in the US step by step, so you can move forward with confidence.
Why Getting a Mortgage Matters
For most people, buying a home wouldn’t be possible without a mortgage. Mortgages allow you to borrow money to buy property, then pay it back over time — typically 15 to 30 years. Understanding how to get a mortgage in the US is crucial to securing a loan that fits your needs and budget.
According to Consumer Financial Protection Bureau, preparing early and learning your options can help you avoid common mistakes and secure better loan terms.
Step 1: Check Your Credit Score and History
Before applying, lenders will look at your credit score. It helps them decide if you’re a good borrower and what interest rate you qualify for.
A score above 620 is usually required for conventional loans. FHA loans may accept lower scores. You can check your score for free at sites like Credit Karma or AnnualCreditReport.com.
Tip: If your score is low, take time to improve it by paying down debt and making on-time payments.
Step 2: Set Your Budget
Understanding how much house you can afford is essential. Most lenders follow the 28/36 rule — meaning your mortgage payment should be no more than 28% of your gross monthly income, and total debt should be under 36%.
Use mortgage calculators from sites like Bankrate to estimate monthly payments and explore how much home fits your budget.
Step 3: Save for a Down Payment and Closing Costs
A down payment is usually required — and the more you put down, the better your chances. For most conventional loans, expect to pay 5%–20%. FHA loans require as little as 3.5%.
In addition, save for:
- Closing costs (2–5% of purchase price)
- Home inspection and appraisal
- Moving expenses
Zillow offers guidance on saving strategies and how much you really need.
Step 4: Get Preapproved for a Mortgage
Before house-hunting, get preapproved by a lender. This shows sellers that you’re serious and financially ready. It also helps you narrow your search to homes you can afford.
You’ll need to provide:
- Pay stubs
- Tax returns
- Bank statements
- ID and Social Security number
Compare lenders via LendingTree to get the best rates and terms.
Step 5: Choose the Right Mortgage Type
There are several mortgage types available, and knowing which suits you best is key to understanding how to get a mortgage in the US.
Here are the most common:
- Conventional loan: Great if you have good credit and can put 10–20% down.
- FHA loan: Ideal for first-time buyers with lower credit scores.
- VA loan: Available to veterans and active-duty military — often with zero down payment.
- USDA loan: For rural and suburban buyers with low-to-moderate income.
Learn more at HUD.gov.
Step 6: Shop for Lenders and Lock Your Rate
Don’t settle for the first lender. Shop around. Different lenders offer different:
- Interest rates
- Loan terms
- Fees
Getting multiple quotes could save you thousands over the life of the loan. Once you’ve found the best rate, consider locking it in to avoid increases.
Use Rocket Mortgage or Better.com to compare current mortgage offers.
Step 7: Submit Your Mortgage Application
Once you’ve chosen a lender and a home, it’s time to apply officially. You’ll submit full documentation and the lender will begin the underwriting process, which includes:
- Verifying income
- Checking your debt-to-income ratio
- Confirming employment
- Ordering an appraisal
It usually takes 30–45 days to process. Keep your finances stable during this period — don’t open new credit cards or take on debt.
Step 8: Close on Your Home
You’re almost there! Once approved, you’ll schedule a closing date. At closing, you’ll:
- Sign all loan documents
- Pay closing costs and your down payment
- Get the keys to your new home
Congratulations — you’ve successfully learned how to get a mortgage in the US and bought your first home!
Bonus Tips for First-Time Buyers
- Take a First-Time Homebuyer Course
Many states offer free or low-cost courses. Visit HUD’s counseling directory to find one near you. - Look into Down Payment Assistance
Some programs offer grants or low-interest loans. See options via Down Payment Resource. - Avoid Big Purchases Before Closing
Buying a car or furniture could delay your mortgage approval.
Final Thoughts
Learning how to get a mortgage in the US can seem like a lot — but taking it step by step makes it manageable. With preparation, good credit, and the right lender, you can unlock the door to your first home.
The dream of homeownership is within reach. All it takes is the right guidance and the right plan.
