How to Apply for a Mortgage in 5 Easy Steps

Buying a home is one of the biggest financial decisions you’ll ever make and for most people, that means applying for a mortgage. If the thought of paperwork and approvals feels overwhelming, don’t worry. We’ve broken down the process into five simple steps to help you feel confident and prepared.

Step 1: Check Your Credit and Financial Health

Before you talk to lenders, take a look at your credit report and score. A higher credit score can not only help you secure a lower interest rate, but can also make your application process faster. Lenders are more likely to approve applicants with strong credit histories, reducing the time spent on financial evaluations.

Quick ways to boost your credit:

• Pay off outstanding debts, especially high-interest credit cards.
• Avoid applying for new credit accounts before your mortgage application.
• Check your credit report for errors and dispute any inaccuracies.

Also, consider your:
Debt-to-income ratio (DTI): This is your monthly debt payments divided by your gross monthly income. Most lenders prefer a DTI below 43%.
Savings: You’ll need cash for your down payment, closing costs, and possibly an emergency fund.

Step 2: Get Pre-Qualified

One of the best ways to simplify your mortgage application process is by getting pre-qualified. Mortgage loan pre-qualification gives you a better understanding of how much you can borrow, which helps narrow down your home search to properties within your budget. It also shows sellers that you’re serious, which can give you an edge in competitive markets.

To get pre-approved, a lender will review your financial documents such as:

• Recent pay stubs or proof of income

• Two years of tax returns

• W-2s or 1099s

• Bank statements

• ID and Social Security number

By organizing these documents ahead of time, you’ll save yourself back-and-forth communication with the lender, making the process much faster.

With Hancock Whitney’s digital mortgage application process you can get pre-qualified in as little as three minutes.¹ Once you’ve received your home loan pre-qualification, keep an eye on rates. Be ready to move forward when rates start to lower.

Step 3: Find the Right Mortgage Type

Understanding the various types of mortgage loans available can help you choose the one that suits your financial situation best. Some loans may have easier requirements or quicker approval times based on your financial profile. Common options include:

• Conventional loans: Great for buyers with good credit and steady income.

• FHA loans: Require lower credit scores and down payments - ideal for first-time homebuyers.

• VA loans: Available to qualified veterans and active-duty military. These loans offer competitive terms and often require no down payment.

• USDA loans: Designed for rural properties, these loans offer low rates and zero down payment for eligible applicants.

You'll also need to choose between a fixed-rate and adjustable-rate mortgage, and decide on a term (typically 15 or 30 years).

Step 4: Apply for a Mortgage Loan Online

Thanks to technology, applying for a mortgage doesn’t have to mean endless paperwork or in-person meetings. Hancock Whitney now offers digital mortgage applications that allow you to apply for a loan online or via phone from the comfort of your home with:

• Incentives: Hancock Whitney may provide incentives toward closing costs² for mortgages pre-qualified through our digital mortgage team and closed with Hancock Whitney as the online mortgage lender.
  
  
• Convenience: You can upload documents, e-sign forms and track the progress of your application anytime with an online loan application.
  
  
• Ease: Many online applications are designed to walk you through step-by-step, reducing confusion.
  
  
• Speed: Online applications can often result in faster approval since everything is processed electronically. 

During the mortgage process, lenders may ask for additional information or clarification on certain documents. Responding quickly to these requests will also keep the process moving forward without unnecessary delays. 

Step 5: Close on Your Home

If the underwriter approves your loan, you’ll receive a loan estimate and later a closing disclosure detailing your final terms and costs. You’ll then:

• Conduct a home inspection and appraisal

• Finalize paperwork

• Pay closing costs (typically 2–5% of the home’s price)

• Sign your mortgage and title documents - many lenders now offer the ability sign documents digitally and finalize the loan. 

Ready to start? Grab your financial docs, get pre-qualified online, and take the first step toward homeownership - on your terms. Learn more about all of the Hancock Whitney mortgage solutions and how to get pre-qualified. Connect with a lending expert near you and tell us more about your dream of homeownership.

¹ Requires timely submission of all necessary information and documentation and assumes consent will be given to perform the pre-qualification process electronically. Extenuating circumstances may cause delays outside this timeframe. Must receive all required information for pre-qualification and pre-qualification must be requested during standard business hours.

This request for a pre-qualification is not a loan approval or commitment to lend. Pre-qualifications are based on current program guidelines and are subject to change at any time, without notice.

² The mortgage loan must be pre-qualified through the digital mortgage team and actually close with Hancock Whitney; if the closing costs are less than the incentives, there is no cash back to the borrower. Offer subject to end at any time.

Hancock Whitney Bank, Member FDIC and   Equal Housing Lender. Bank NMLS# 454781.