How to Get a Mortgage in the U.S. in 2025
September 1, 2025
6 minutes
Quick Comparison: Which Mortgage Fits You?
Loan Type | Best For | Credit Score | Down Payment | Unique Perks |
|---|---|---|---|---|
Conventional | Good credit & stable income | 620+ | 3%–20% | Lower rates with strong credit |
FHA | First-time or low-credit | 500–580+ | 3.5%–10% | Low down payment |
VA | Veterans & military | 580+ | 0% | No PMI, flexible credit |
USDA | Rural buyers | 640+ | 0% | No down payment |
Jumbo | High-value homes | 700+ | 10%–20% | Larger loan amounts |
Want help picking the right one? Compare now with reAlpha Mortgage.
Steps to Get a Mortgage in the U.S.
Getting a mortgage in the U.S. involves several key steps, from assessing your financial readiness to securing a lender. This process typically includes applying, providing documentation, and finalizing the terms of your loan.
Step 1: Assess Your Financial Situation
Before applying for a mortgage, you’ll need to evaluate your finances, as lenders will assess your credit score, debt-to-income (DTI) ratio, and employment history to determine eligibility.
Key financial factors U.S. mortgage lenders consider:
- Credit Score: Most conventional loans require a minimum credit score of 620, while FHA loans allow scores as low as 500 with a higher down payment.
- Debt-to-Income Ratio (DTI): Most lenders prefer a DTI below 43%, though some loan programs allow higher ratios.
- Employment & Income Stability: Lenders typically require at least two years of steady employment and proof of income through W-2 forms, tax returns, or pay stubs.
Quick Tip: Check your credit report for errors and pay down debts to improve your approval odds before applying for a mortgage.
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Step 2: Get Pre-Approved for a Mortgage
A mortgage pre-approval is an essential step that shows sellers you’re a serious buyer and gives you a clear idea of your budget.
During pre-approval, lenders review:
Income & employment history (W-2 forms, pay stubs, tax returns).
Credit report & score to assess financial risk.
Estimated down payment & loan amount you qualify for.
Benefits of getting pre-approved:
- Stronger negotiation power – Sellers are more likely to accept offers from pre-approved buyers.
- Faster closing process – You’ve already completed part of the loan approval process.
- Clear budget estimate – Avoid wasting time looking at homes outside your price range.
Pro Tip: Many lenders allow digital mortgage pre-approvals, making it easier to submit your documents online.
Step 3: Choose the Right Mortgage Loan
U.S. homebuyers have multiple loan options, each catering to different financial situations.
Common mortgage types in the U.S.:
Choosing the right mortgage is key to homeownership in the U.S. Common options include fixed-rate, adjustable-rate, and government-backed loans like FHA, VA, and USDA. Each serves different financial needs, so understanding them helps secure the best deal.
| Loan Type | Best For | Credit Score Requirement | Down Payment | Key Benefits |
|---|---|---|---|---|
| Conventional Loan | Buyers with good credit & stable income | 620+ | 3%–20% | Lower interest rates with higher credit scores |
| FHA Loan | First-time buyers or those with lower credit | 500 (10% down) or 580 (3.5% down | 3.5%–10% | Easier qualification, lower down payment |
| VA Loan | Veterans & active-duty military | No minimum set by VA (lenders may require 580+) | 0% | No PMI, competitive rates |
| USDA Loan | Rural homebuyers | 640+ recommended | 0% | No down payment, lower mortgage insurance |
| Jumbo Loan | Buyers purchasing high-cost homes | 700+ | 10%–20% | Can finance expensive properties above conforming loan limits |
Step 4: Compare Interest Rates and Mortgage Terms
Mortgage rates fluctuate, so it's important to shop around for the best deal.
| Feature | Fixed-Rate Mortgage | Adjustable-Rate Mortgage (ARM) |
|---|---|---|
| Interest Rate | Stays the same for the loan term | Starts low, then adjusts periodically |
| Predictability | High – Monthly payments remain stable | Lower initially, but may increase over time |
| Best For | Long-term homeowners who want stability | Short-term buyers or those expecting income growth |
| Common Terms | 15-year, 30-year | 5/1, 7/1, 10/1 (fixed for first 5, 7, or 10 years, then adjusts) |
Step 5: Apply for a Mortgage and Submit Required Documents
Once you've chosen a mortgage, you’ll need to formally apply and provide financial documents
Once you've chosen a mortgage that fits your financial needs, the next step is to formally apply. This process involves providing detailed financial information to the lender so they can assess your creditworthiness and approve your loan.
Common Documents Required for a Mortgage Application:
Lenders require several key documents to verify your income, assets, and financial stability. These typically include:
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1. Tax Returns (Last Two Years)
- Copies of your federal tax returns (IRS Form 1040) with all schedules.
- If you’re self-employed, lenders may require business tax returns as well.
2. W-2 Forms or 1099s (Proof of Income)
- W-2s (if you’re a salaried employee) or 1099s (for independent contractors and freelancers).
- Helps lenders verify your annual income and employment status.
3. Bank Statements (Last 2-3 Months)
- Checking and savings account statements to show cash reserves.
- Lenders use these to confirm your down payment funds and assess spending habits.
4. Employment Verification Letter
- A letter from your employer confirming your position, salary, and length of employment.
- Recent pay stubs (typically last two) may also be required.
5. Credit History & Debt Statements
- Lenders pull your credit report to check your credit score and debt repayment history.
- You may need to provide statements for outstanding debts such as car loans, student loans, and credit cards.
Step 6: Home Appraisal and Underwriting
- Home Appraisal – The lender orders an appraisal to determine the property's value.
- Underwriting – The lender reviews all financial documents and approves (or denies) the loan.
- Quick Tip: Avoid making large purchases or opening new credit accounts during underwriting - it could delay or jeopardize your mortgage approval.
Step 7: Closing on Your New U.S. Home
The final step is closing day, where you’ll sign mortgage documents and officially become a homeowner!
Closing costs you may need to pay:
- Down payment (if required)
- Loan origination fees
- Homeowners insurance
- Property taxes
- Title & escrow fees
Quick Tip: Closing costs typically range from 2-5% of the loan amount - ask about seller concessions or lender credits to reduce these expenses.
Why Choose reAlpha Mortgage?
Get Paid to Buy Smart: Earn up to 1.5% buyer agent commission back:
- 0.5% from agent
- +1% from mortgage
- +1.5% from title
Full-Service Support:
- Transparent rate comparisons
- Pre-approval to close guidance
Ready to Buy Smarter?
Buying a home is a big decision - and having the right information puts you ahead. But the real advantage comes from pairing smart research with a smarter way to buy.
When you use a reAlpha real estate company, you can be eligible to receive up to 1% of the home purchase price back as a credit at closing. Add reAlpha Mortgage, and that rebate can increase to up to 1.5% back, helping offset closing costs and keep more money in your pocket when it matters most.
The rebate is simple, transparent, and applied directly at closing - no complicated hoops, no delayed payouts. Just real savings tied to using a fully integrated homebuying experience.
See how much you could save:
- Check your eligibility
- Explore homes that fit your budget today.
- Your next move could come with thousands back at closing.
Estimate your savings → Rebate Calculator
Whether you're a first-time buyer, relocating, or investing from abroad, reAlpha makes every step transparent and reward-driven.
Explore More Homebuying Guides by State
Looking for affordable or safe places to live - or wondering about property tax or building costs in a specific state? Start here:
See all reAlpha real estate blogs for location guides, mortgage tips, and homebuyer checklists.
FAQs
1. What credit score do I need to qualify for a mortgage in the U.S.?
Most conventional loans require a minimum credit score of 620, while FHA loans allow scores as low as 500 with a 10% down payment (or 580 with 3.5% down). VA and USDA loans have more flexible requirements.
2. What’s the difference between a fixed-rate and an adjustable-rate mortgage (ARM)?
A fixed-rate mortgage has the same interest rate for the entire loan term, ensuring stable monthly payments. An adjustable-rate mortgage (ARM) starts with a lower rate but adjusts periodically, making it riskier if interest rates rise.
3. What documents do I need to apply for a mortgage?
Lenders typically require W-2 forms, tax returns (last 2 years), pay stubs, bank statements, credit report, and employment verification. Self-employed borrowers may need additional business financial documents.
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Article by
As a great communicator with excellent negotiation skills, I focus more on establishing unbreakable ties between my clients, as opposed to just helping them achieve their real estate dreams. As a representative of both buyers and sellers, I understand how to lead a transaction process to ensure that the needs of both are met. My track record speaks for itself. Since I ventured into the industry in 2013 as a realtor, I have not only helped many buyers land perfect homes, but I have also assisted tons of owners and investors build wealth.