I Asked ChatGPT How To Apply for a Home Loan — Here’s What It Said
Written by
Cynthia Measom
Edited by
Levi Leidy
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
As of September 2025, mortgage rates have dropped the lowest they’ve been in almost a year, which is causing prospective homebuyers to take a second look. If you’ve never applied for a home loan, however, it can seem overwhelming due to the multiple steps involved.
To help sort it all out, GOBankingRates asked ChatGPT to break down the steps of applying for a home loan.
Check Your Credit Score
The first thing ChatGPT said to do is review your credit score because lenders use it to determine your eligibility for a home loan and also the interest rate.
According to Zillow, a good score to buy a home is 720 or higher, but a score of 670 or higher can still result in decent rates.
Calculate What You Can Afford
Next, the artificial intelligence (AI) assistant recommended calculating how much you can afford for a monthly payment, including property taxes and insurance.
Use a free mortgage calculator to help.
Plan To Make a Down Payment
Chat GPT also stated it’s important to have money set aside for a down payment, which is typically between 3%-20% of the purchase price.
The amount you’ll actually need for a down payment depends on the type of home and the loan program used for financing. Some government-backed loans may not require anything down, like a VA loan. However, conventional loans usually require a downpayment of at least 3%-5%, with lower amounts reserved for first-time homebuyers or others who qualify. Jumbo loans or loans for investment properties typically require much higher down payments of 20%-25%.
Keep in mind that if you put down less than 20%, in many cases you will be required to pay private mortgage insurance (PMI) monthly until you reach 20% equity in the home.
Gather Documentation
Getting a home loan requires providing quite a bit of personal and financial data. Here’s what lenders usually ask for, according to ChatGPT:
- Proof of income (pay stubs, W-2s, tax returns)
- Proof of employment
- Bank statements
- Identification (driver’s license, Social Security number)
- Debt information (credit cards, car loans, student loans)
Save time by gathering this information in advance.
Choose a Lender and Loan Type
Next, the AI assistant said to compare banks, credit unions and online lenders to find the best interest rates and terms.
It also stated to decide between a fixed-rate or adjustable-rate mortgage. A fixed-rate mortgage offers a fixed rate and predictable monthly payments, while an adjustable-rate mortgage offers a rate that starts out lower but will adjust with the market and may go higher or lower. Adjustable-rate mortgages are good for borrowers who want upfront, short-term savings or who know they will refinance or move in the next few years.
It also recommended looking into government-backed options like FHA, VA or USDA loans if you qualify.
Get Pre-Approved
ChatGPT said that getting a mortgage loan pre-approval shows sellers that you’re a serious buyer. It explained that to pre-approve you, a lender checks your credit and finances, then gives you an estimated loan amount.
Keep in mind that pre-approval letters are only good for 90 days, so don’t request one too early.
Submit a Loan Application
Once you’ve chosen a home you want to purchase, fill out the official mortgage application with your lender, stated ChatGPT. This is when you will also have to provide different pieces of personal and financial data.
It added that the lender will order an appraisal of the property and underwriters will review your file before making a decision.
Close on the Loan
Once your loan is approved, ChatGPT recommended reviewing the loan estimate and closing disclosure carefully. You’ll want to do this to ensure that the loan terms and costs were what you were expecting. It also said you’ll need to bring your down payment and closing costs to the closing appointment.
The last step, according to ChatGPT? Sign the final paperwork and get the keys to your home.
More From GOBankingRates
