Sara Routhier, Managing Editor and Outreach Director, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming world o...

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Joel Ohman is the CEO of a private equity-backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He also has an MBA from the University of South Florida. ...

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Reviewed by Joel Ohman
Founder, CFP®

UPDATED: Jul 29, 2021

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Summary

  • Mortgage loans usually don’t cover down payments
  • Good credit scores produce lower interest rates
  • Compare multiple lenders and go with the company that best meets your needs

Did you know you can apply online for mortgage loans? How do you apply for mortgage loans?

Read through this guide to learn how you can apply for mortgage loans and secure low annual percentage rates.

When you finish reading about how to apply for mortgage loans, enter your ZIP code in the free comparison tool above to compare multiple lenders in your area.

How can I apply for a mortgage loan?

Before you apply, there are a few things you’ll need to qualify for a mortgage loan. Here’s a list of items and information mortgage lenders usually ask for:

  • W-2s from the last two years
  • Pay stubs from the last 30 days
  • Banks statements from the last two months
  • Personal and business tax returns
  • Social Security number
  • Permanent address
  • Driver’s license
  • A credit report
  • Copy of year-to-date profits if you’re self-employed
  • A signed copy of a purchase and sales agreement

Once you have all the necessary documents, you should be ready to start a mortgage application.

But what are the steps to getting a mortgage loan? Continue reading to learn how applying for a mortgage loan works.

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Six Steps to Getting a Mortgage Loan

What are the steps to getting a mortgage? Although the steps vary for each lender, we found six steps that most borrowers face when they want a mortgage loan. Let’s go through each step.

  • Step #1 – Fill out a mortgage application in person or online
  • Step #2 – Review the estimates to get an idea of how much you’ll spend on monthly payments
  • Step #3 – Pick a bank, credit union, or other mortgage loan agency
  • Step #4 – Your loan application and other qualifications go into processing
  • Step #5 – The lender begins the underwriting process
  • Step #6 – If everything checks out, your loan will be approved

If you’re denied a mortgage loan, the lender explains why your qualifications aren’t enough to get a loan.

Some lenders have minimum credit score requirements. You may get around loan denial by going to another lender with lower requirements.

However, lenders with lower requirements often have higher interest rates.

Can I apply for a mortgage online?

The short answer is yes. You can apply for a mortgage loan online faster than filling out and processing an in-person mortgage application.

If you’re having trouble getting a mortgage loan in your community, try an online lender. Online mortgage lenders can process your mortgage loan much quicker.

Electronic documents move almost instantly, so a mortgage loan company can receive and process your information faster.

Factors That Determine Mortgage Loan Payments

Many factors determine whether affordable mortgage payments are available to you. Take a look at the list below to see what will affect your monthly mortgage payments.

  • Home price
  • Mortgage lender
  • Down payment
  • Loan amount
  • Annual percentage rate (APR)
  • Loan terms
  • Credit score
  • Location (state)

Do you want to see how these factors work? Type “mortgage loan calculator” in the Google search bar to access a calculator tool that estimates your monthly mortgage loan payment.

APR varies for each person. To secure a low APR, you need a good credit score.

According to the Federal Trade Commission (FTC), insurance companies and lenders give lower rates to people who have a good credit history because this correlates to lowered risk.

Apply for a Loan

Enter your ZIP code below to view lenders with cheap loan rates.

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Which companies are the top mortgage lenders in 2021?

Before you get a mortgage loan, you should shop around with multiple lenders to find the best interest rates and good service. You should start with the best lenders.

We put together a list of the best mortgage loan agencies in the United States. Let’s review the list below.

The Best Mortgage Lenders in 2021
Mortgage CompaniesBest QualityMinimum Credit Score Requirement
AlterraBest of FHA LoansN/A
BetterBest for Financing620
ChaseBest for First-Time Home Buyer and Buyers Who Need Jumbo Loans620
ConnexusBest for Home Equity Lines of CreditN/A
FlagstarBest for Jumbo LoansN/A
Guaranteed RateBest for Online Experience and Refinancing620
Navy FederalBest for VA LoansN/A
New American FundingBest for Nontraditional Credit Histories620
North American Savings BankBest for Overall Mortgage Experience for First-Time Home Buyers and Veterans620
PrimeLendingBest of FHA Loans580
Quicken LoansBest for Customer Satisfaction620
Wells FargoBest for Overall Online Experience620
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PrimeLending has the lowest credit score requirement. Meanwhile, North American Savings Bank is the best lender overall.

Your experience may vary for each company, so you should compare lenders to ensure you’re getting the best deal.

Should I get a personal loan to pay for a mortgage down payment?

Mortgage lenders don’t recommend you get a personal loan from another agency to pay for a down payment on a mortgage. If you can’t afford the down payment cost, you may have to take out a personal loan.

How does a mortgage loan work after the down payment?

After you’ve made a down payment, the mortgage loan activates and pays for the price of the home. You’ll pay back interest over the term of the loan.

Apply for Mortgage Loans: What’s the bottom line?

Applying for a mortgage loan is simple when you have all the requirements. It can get complicated if you have fair or poor credit. But don’t let that stop you. There’s always a way for you to secure a mortgage loan.

Now that you know how to apply for a mortgage loan, use our free online quote tool to compare multiple lenders near you and get a mortgage loan today.