How to Get a Mortgage

Getting a home loan isn't just a big step, it's an entire staircase — and it can take a long time to reach the top. There are times when the climb will feel dizzying, but knowing how to get a mortgage before you start can help you stay organized and feel more in control.

Ready to learn what it takes? Here's how to get a mortgage, step by step.

1. Give yourself a financial checkup

Before you set off to get a mortgage, make sure you’re financially prepared for homeownership. Do you have a lot of debt? What have you saved for a down payment? What about closing costs?

A thorough understanding of your income and debts will help you know exactly how much house you can afford.

Additionally, know that lenders look closely at your credit score when determining your eligibility for a mortgage. A score of at least 620 will qualify for most loan types, but lenders are more likely to approve you with a higher score — and you’ll also likely receive lower rate offers.

Check your credit score, and if it needs work, build up your credit before you begin applying for a home loan. That can include paying down outstanding debt, disputing errors on your credit reports and not opening any new accounts.

» MORE: How your credit score affects your mortgage rate

2. Identify the right mortgage

There are many types of home loans available. The one that’s best for you will depend on your financial situation and homeownership priorities.

Types of mortgages

• Conventional loans are the most common loan type that you are likely to find among the largest selection of lenders. They have stricter qualification requirements compared with loans insured by the government, so they're a better fit for borrowers with strong credit. These loans allow for a down payment as low as 3%, but if your down payment is less than 20%, you’ll have to pay for private mortgage insurance, or PMI.

• FHA loans are insured by the Federal Housing Administration. These loans can have more lenient credit score minimums and allow the use of gift money as part of the down payment. FHA loans have a minimum down payment requirement of 3.5%, and you must pay for mortgage insurance for at least 11 years. 

• VA loans are only available to active service members or veterans, and they're backed by the Department of Veterans Affairs. These loans often require no down payment.

• USDA loans are a program of the U.S. Department of Agriculture. These zero-down-payment home loans are for borrowers below a set income threshold who live in qualifying areas.

• Jumbo loans are for properties that exceed the loan limits of conventional loans. They offer a way to buy homes in more expensive areas.

In addition to choosing the type of loan you want, you’ll also have to decide whether you want to apply for a fixed or adjustable interest rate, and select the loan term that makes sense for your budget.

Fixed or adjustable rates

• Fixed-rate mortgages are popular because the mortgage interest rate doesn’t change over the life of the loan. The rate to which you initially agree will be the rate you keep until you sell the home or refinance.

• Adjustable-rate mortgages (ARMs) have introductory rates that start out fixed, but can then fluctuate. If ARM rates are lower than fixed when you're home shopping, and you don't plan to stay in the home long, an adjustable-rate mortgage could yield savings.

Mortgage terms

• A 30-year mortgage is the most common term. Monthly payments are generally smaller, but you’ll pay more interest overall than you would with a shorter-term loan.

• Shorter-term house loans, like 10- or 15-year mortgages, are also available. You pay less interest, but monthly payments are generally larger.

» MORE: Use our mortgage calculator to estimate your monthly mortgage payment

3. Research mortgage lenders

Look at multiple home loan lenders to find the one for you. There's a wide array of lenders to consider, including traditional banks, online non-bank lenders and credit unions. Consider starting with your own bank or credit union. Some offer lower interest rates for existing customers.

If you're looking for a particular type of mortgage, you may want to zero in on specialty lenders. For example, if you know you want a VA loan, a lender that focuses on working with military borrowers may best fit your needs.