Get your home loan application ready in a few simple steps.

To apply for a home loan, gather your financial documents (tax returns, pay stubs, bank statements), check your credit score and get pre-approval with at least three lenders. The application itself takes 1-2 hours to complete. Approval typically comes within 3-5 business days and the full process from application to closing runs 30-45 days.

How Can I Apply for a Home Loan?

Applying for a home loan follows a predictable process. Knowing each step lets you prepare and speeds up approval.

Step 1: Check Your Credit Score

Before applying, know where you stand. Pull your credit reports from all three bureaus at AnnualCreditReport.com. Most lenders use your middle score.

Minimum scores by loan type:

• Conventional: 620
• FHA: 580 (3.5% down) or 500 (10% down)
• VA: No official minimum, but 620+ preferred
• USDA: 640

Jennifer Martinez checked her scores before applying and found a 30-point difference between bureaus. Her Equifax score of 648 was dragging down her middle score. She disputed an error and watched her middle score jump to 672 within 45 days.

Step 2: Gather Your Documents

Lenders require extensive documentation. Having everything ready speeds up the process significantly.

Documents you’ll need:

Category	Required Documents
Identity	Driver’s license, Social Security card
Income	2 years of W-2s, 30 days of pay stubs
Taxes	2 years of federal tax returns (all pages)
Assets	2-3 months of bank statements (all pages)
Employment	Employer contact info, verification letter
Debts	Current statements for all loans

Self-employed? Add these:

• 2 years of business tax returns
• Year-to-date profit and loss statement
• Business license or CPA letter

Marcus Thompson organized his documents in labeled folders before his first lender meeting. When asked for additional items, he produced them same-day. His loan closed 8 days ahead of schedule because nothing caused delays.

Step 3: Calculate Your Budget

Know what you can afford before shopping for loans.

The 28/36 rule:

• Housing costs should stay under 28% of gross monthly income
• Total debts (including housing) should stay under 36%

Quick calculation:

• Gross monthly income: $7,500
• Max housing payment (28%): $2,100
• Max total debt (36%): $2,700
• If existing debts = $600/month, max mortgage payment = $2,100

Step 4: Shop Multiple Lenders

Getting quotes from at least three lenders can save thousands. Rates and fees vary significantly between lenders.

Where to apply:

• Banks: Your existing bank may offer relationship discounts
• Credit unions: Often lower rates and fees
• Mortgage brokers: Shop multiple lenders for you
• Online lenders: Competitive rates, fast process

All credit inquiries for mortgages within 14-45 days count as one inquiry for scoring purposes. Shop aggressively during this window.

Angela Chen got quotes from her bank, a credit union and an online lender. The credit union offered 6.625%—a quarter point lower than her bank. That difference saves her $52 monthly or $18,720 over the loan term.

Step 5: Complete the Application

The actual application takes 1-2 hours. You can apply online, by phone or in person.

Information you’ll provide:

• Personal details (name, SSN, date of birth)
• Current and previous addresses (2 years)
• Employment history (2 years)
• Income and assets
• Property details (if you have one under contract)
• Liabilities and debts

Within 3 days, you’ll receive:

• loan estimate document showing rate, fees and terms
• List of any conditions or additional documents needed

Step 6: Lock Your Rate

Once approved, you can lock your interest rate. Rate locks typically last 30-60 days.

rate lock considerations:

• Lock early: Protects against rate increases
• Float down option: Some lenders let you take a lower rate if they drop
• Extension fees: If closing delays, extending the lock costs money

Step 7: Underwriting and Approval

The lender verifies everything you submitted. This takes 1-3 weeks.

What underwriters check:

• Employment verification (they call your employer)
• Bank deposit verification (explain large deposits)
• Credit re-check (avoid new accounts)
• Appraisal review
• Title search review

Common conditions:

• Letter of explanation for credit inquiries
• Proof of deposit source
• Updated pay stubs
• Verification of rental history

Step 8: Clear to Close

Once underwriting approves, you receive “clear to close” status. This means:

• All conditions satisfied
• Final loan documents prepared
• Closing scheduled

You’ll receive the Closing Disclosure at least 3 business days before closing. Review it carefully against your Loan Estimate.

How Can I Get a Home Loan?

Getting approved depends on meeting lender requirements and presenting a strong application.

Credit Requirements

Your credit profile affects both approval and rate.

How credit impacts your loan:

Score Range	Approval Odds	Rate Impact
760+	Excellent	Best rates
700-759	Very good	Slightly higher
660-699	Good	Moderate increase
620-659	Fair	Higher rates, limited options
Below 620	Challenging	FHA or special programs only

Income Requirements

Lenders want stable, verifiable income that supports your payment.

What counts as income:

• Base salary or hourly wages
• Overtime (if 2+ year history)
• Bonuses (if 2+ year history)
• Commission (if 2+ year history)
• Self-employment (2-year average)
• Rental income (75% counted)
• Social Security, pension, disability
• Alimony/child support (if continuing 3+ years)

Debt-to-Income Ratio

Your DTI measures monthly debts against gross income.

DTI limits by loan type:

• Conventional: 43-45% max
• FHA: 43% standard, up to 50% with compensating factors
• VA: No strict limit, but residual income required
• USDA: 41% standard

Roberto Garcia earned $6,800 monthly with $1,400 in existing debts (21% DTI). Adding a $1,900 mortgage payment brought his DTI to 49%—too high for conventional. He paid off his car loan over 6 months, dropping his DTI to 40% and qualifying easily.

Down Payment Requirements

Different loans require different down payments.

Loan Type	Minimum Down	PMI Required?
Conventional	3%	Yes, until 20% equity
FHA	3.5%	Yes, for life of loan
VA	0%	No
USDA	0%	Annual fee applies

How to Get a Home Loan: Application Timeline

Knowing the timeline lets you plan your move.

Week 1: Pre-Application

• Check credit scores
• Gather documents
• Calculate budget
• Research lenders

Week 2: Applications

• Submit applications to 3+ lenders
• Receive Loan Estimates within 3 days
• Compare offers and select lender
• Provide additional requested documents

Weeks 3-4: Processing

• Loan processor reviews file
• Orders appraisal
• Orders title work
• Requests additional documentation

Weeks 4-5: Underwriting

• Underwriter reviews complete file
• Clears conditions
• Issues conditional approval
• Final conditions cleared

Week 6: Closing

• Receive Closing Disclosure
• Review final numbers
• Sign documents at closing
• Get your keys

Total timeline: 30-45 days from application to closing

Common Application Mistakes to Avoid

These errors delay or derail loans:

Don’t change jobs during the process. Employment verification happens right before closing. A job change restarts the income verification process.

Don’t make large purchases. That new car or furniture set changes your DTI and available assets. Wait until after closing.

Don’t open new credit accounts. New inquiries and accounts affect your credit score and require explanation letters.

Don’t move money without paper trails. Large deposits require documentation. Keep records of all transfers.

Don’t forget to disclose everything. Hidden debts or income sources surface during underwriting. Disclose upfront to avoid delays.

Patricia Okonkwo got pre-approved for $285,000. Two weeks before closing, she financed a $22,000 car. Her DTI jumped from 38% to 47%. The lender couldn’t close the loan and she lost her earnest money deposit.

Tips to Get Approved Faster

Speed up your loan with these strategies:

Respond Same-Day to Requests

Every document request adds days to your timeline. Keep your phone charged and email checked. Responding within hours instead of days can shave a week off closing.

Keep Documents Organized

Create digital folders for each document category. When the lender asks for your 2023 W-2, you should find it in seconds.

Maintain Open Communication

Ask your loan officer about timeline and potential issues. A quick phone call can prevent misunderstandings that cause delays.

Avoid Financial Changes

From application through closing:

• No new credit cards
• No major purchases
• No job changes
• No large cash deposits
• No closing accounts

Get Pre-Approved Before House Hunting

Pre-approval means the lender has already verified your income, assets and credit. When you find a home, the loan moves faster because the heavy lifting is done.

Different Ways to Apply for a Home Loan

Choose the application method that fits your style.

Online Application

Pros:

• Complete anytime, anywhere
• Upload documents digitally
• Track progress online
• Often faster initial processing

Cons:

• Less personal guidance
• May miss nuances in your situation
• Communication can feel impersonal

In-Person at a Bank or Credit Union

Pros:

• Face-to-face guidance
• Questions answered immediately
• Relationship building
• May offer member discounts

Cons:

• Limited to business hours
• Must travel to location
• May have fewer loan options

Through a Mortgage Broker

Pros:

• Shops multiple lenders for you
• Expert guidance throughout
• Access to wholesale rates
• Handles paperwork

Cons:

• Broker fee may apply
• Quality varies by broker
• Less direct lender relationship

By Phone

Pros:

• Personal attention
• Convenient from home
• Can ask questions in real time

Cons:

• Documents still need uploading
• May require callbacks
• Less visual guidance

Frequently Asked Questions

How long does it take to apply for a home loan?

The application itself takes 1-2 hours. Receiving a decision (pre-approval) takes 1-3 business days. The full process from application to closing typically runs 30-45 days, though some lenders offer faster timelines.

What documents do I need to apply for a home loan?

You’ll need 2 years of tax returns, 2 years of W-2s, 30 days of pay stubs, 2-3 months of bank statements, a driver’s license and Social Security card. Self-employed borrowers also need business tax returns and profit/loss statements.

Does applying for a home loan hurt my credit?

Yes, but minimally. A mortgage inquiry typically drops your score 5-10 points. However, multiple mortgage inquiries within 14-45 days count as a single inquiry, so shop multiple lenders during this window without additional damage.

Can I apply for a home loan without a job?

Traditional employment isn’t required, but you need verifiable income. Acceptable alternatives include self-employment income, rental income, retirement income, Social Security, disability payments or investment income. Asset-based loans exist but require substantial reserves.

How much income do I need to qualify for a home loan?

There’s no minimum income requirement. What matters is your debt-to-income ratio. Generally, you need enough income that your total monthly debts (including the new mortgage) don’t exceed 43-50% of gross monthly income.

Can I get a home loan with bad credit?

Yes, through FHA loans (minimum 500-580 score), VA loans (no official minimum) or non-QM loans. Expect higher interest rates and potentially larger down payment requirements. Improving your score before applying saves money long-term.

Should I get pre-approved before house hunting?

Yes. Pre-approval shows sellers you’re a serious buyer with verified financing. It also reveals your exact budget before you fall in love with a home you can’t afford. Most listing agents require pre-approval letters with offers.

What’s the difference between pre-qualification and pre-approval?

Pre-qualification is a quick estimate based on self-reported information—no document verification. Pre-approval involves full document review, credit check and underwriter assessment. Pre-approval carries much more weight with sellers.

Related Articles

• Mortgage Pre-Approval: What It Is, How to Get It and Why It Matters
• Mortgage Application Checklist: Documents You Need to Apply
• How to Buy a House: Step-by-Step Guide for 2025
• How to Make an Offer on a House: Step-by-Step Guide