Are you planning to borrow money to buy a house? Here’s how to get a mortgage — and get the best interest rate when you do.

Read more: How much house you can afford with a $70,000 salary

The mortgage application process can feel scary, especially if you’re a first-time home buyer. The key to making the process go smoothly is preparation.

Here’s the step-by-step process you can expect when you get a mortgage:

1. Improve your credit. Your credit score and history will determine what loan programs you qualify for and influence your mortgage terms and interest rate too.

2. Choose the right mortgage. There are many mortgage loan programs you can choose from. Speak to your mortgage banker to help you choose the best one.

3. Find the best mortgage lender. Loan options, fees, and rates vary by lender. Be sure to compare a few different companies to find the best lender.

4. Get prequalified first, then preapproved. Prequalification can give you an idea of what you might qualify for, while preapproval is a more official estimate.

5. Find the right house at the right price. Use your mortgage preapproval to determine your price range. Once you find a house you like, make an offer and include your preapproval letter.

6. Select a loan offer and apply. Apply to several lenders for a mortgage and choose the best one.

7. Documents, documents, documents. You’ll need to submit a whole host of financial documents before getting approved for a mortgage loan.

If you have questions about how to get a mortgage, lean on your banker, real estate agent and loan officer. They’re there to help.

Learn more: What documents do I need for a mortgage loan preapproval?

Mortgage lenders look at your credit history and credit score when evaluating your loan application. These can give them insight into your spending habits, which they use to judge how likely you are to make your monthly payments. They’ll then use this assessment to help set your loan term, interest rate, and loan amount.

A higher credit score will improve your chances of mortgage approval, lower your interest rate, and make your payment more manageable.

You’ll also need to meet minimum credit score requirements to buy a house in the first place, though the exact score you need will depend on your loan program and lender. For a conventional loan, you can expect to need at least a 620 credit score.

To see what loans you may qualify for, request your credit report from all three credit bureaus: Equifax, and Experian and TransUnion. Review your credit history, dispute any errors you find, and work to pay down credit card and other monthly debts you have. All of these steps can improve your credit score and chances of mortgage approval.

There are many types of mortgage loans, and understanding the basics can help you choose the loan that best suits your financial situation.

When preparing to get a mortgage, you should think about:

• Fixed-rate mortgages vs. adjustable-rate mortgages. The interest rate on a fixed-rate loan will remain the same for your entire loan term. Adjustable-rate loans have rates that change over time. They often have lower interest rates for the first few years of the loan.

• The term of the loan you might want. Though most homebuyers choose a 30- or 15-year mortgage, there are many other loan terms to choose from. Consider how long you plan to stay in the home and how quickly you want to build equity.

• Possible mortgage loan programs. Federal government-backed loans like FHA loans, USDA loans (guaranteed by the U.S. Department of Agriculture), and VA loans can often be easier to qualify for and require lower down payments — or sometimes no down payment at all. Jumbo loans conventional loans specifically for higher-priced properties. Conforming loans are another type of conventional mortgage. These have requirements set by Fannie Mae and Freddie Mac and require down payments of just 3%.

Your mortgage lender can help walk you through your options, as well as the fees and costs of each.

To get the most favorable loan terms, you need to shop around. Keep in mind that if you are a qualified, creditworthy buyer with a steady income, mortgage lenders will compete for your business.

To choose a mortgage lender, start by talking to the bank that has your checking, savings, or retirement accounts, as they may offer discounts for existing customers. You should also consider a local credit union, a few online lenders, and any lenders recommended to you by someone you know and trust.

Compare loan programs, qualifying requirements, and costs (you’ll see these on the loan estimate form they will give you). Be sure to check reviews of each lender. You can also look at the NMLS database to see if the lender is facing legal or regulatory trouble.

If you want to simplify the process, you can reach out to a mortgage broker. They can help you shop around and compare home loans from different lenders.

Read more: Best mortgage lenders for first-time home buyers

Get prequalified, and preapproved

To get a good read your home-buying power, ask a lender for a mortgage prequalification. A prequal is a lender's initial impression of your creditworthiness and eligibility for a mortgage. It will offer you an early look at what kind of homes you might be able to afford, how much your monthly payment might be, and your chances at qualifying for a loan — but this is all an educated guess, at best.

Before seriously house hunting, get a mortgage preapproval. The lender will pull your full credit report, assess your income and assets and give you a much clearer idea of what kind of interest rate and loan limits you'll qualify for. However, it's not a final decision. You'll get that when a seller accepts your offer on a house, you submit a full application, and the lender begins the underwriting process.

Read more: Does mortgage preapproval hurt your credit score?

A good real estate agent can guide you through the house hunting process, especially when it comes to making an offer. They will pull comparable sales in the neighborhood to make sure the purchase price you’re offering will give you a good chance of having the buyer accept, is fair, and on par with recent sales in the area.

No matter how much you like a home, resist the temptation to spend more than you can afford. The cost of owning a home is more than just the monthly mortgage, — property taxes, HOA dues, maintenance, insurance, and more — and you want to avoid saddling yourself with cost's that make you "house poor."

Select a loan offer and apply

The next step is to choose the best mortgage you can qualify for, and that means getting more than one lender to bid for your loan.

Make an official application with two or three of your lender finalists. Ask for a Loan Estimate from each with the same loan term, amount of money, and down payment, and be sure the quote includes zero discount points. It will make the math much easier to compare each lender's offer.

The lenders will issue loan offers with a mortgage rate, an estimate of your monthly mortgage payment, and the total interest you'll pay over the life of the loan. Keep in mind that you'll have to pay homeowners insurance on top of your monthly payment, so shop around for this as well.

A lot of getting a mortgage is a paper chase, as the lender will need to assess your finances. Some of the documents you'll need to gather include:

• Identification docs, such as driver's license and Social Security number.

• Employment history and proof of income for the past two years — things like W-2s, 1099s, and recent pay stubs.

• Financial statements, including checking, savings, retirement, and investment accounts.

• Federal tax returns.

• Legal documents related to alimony or child support.

• If you're self-employed, you'll need to provide profit and loss statements.

• Paperwork about any financial gifts you've received.

• Copy of the signed purchase agreement for the house you're buying.

You will also need to agree to a credit check. This will allow the lender to gauge your debt-to-income ratio (DTI), which plays a big role in how much you can borrow.

It will take a few weeks — probably four to six — to go through the lender's underwriting process. In fact, according to ICE Mortgage Technology, the average loan takes 42 days from offer to closing. FHA loans may take slightly longer.

Your loan can also get delayed (or even canceled entirely) if you don’t have your documentation ready or if there are changes to your credit between your preapproval and closing day. For this reason, it’s important to keep your spending in check after submitting your offer, and avoid opening any new accounts. (So hold off on buying that new furniture until after you’ve signed your paperwork!)

Learn more: Will applying for a new credit card hurt my mortgage application?

It's relatively easy to get a mortgage if you have a strong financial profile, including employment history, credit score, debt levels, and down payment. It can be more difficult if you are less financially stable.

To start the mortgage process, use a mortgage calculator to figure out how much you can afford to pay each month toward a home loan.

Mortgage lenders don't simply look at your income to decide if you qualify for a mortgage. Instead, they look at your debt-to-income (DTI) ratio, which is your monthly pre-tax income versus your monthly payments toward debts. If your DTI ratio is too high, you may not qualify for a mortgage loan.