Let Berkshire Hathaway Home Services PenFed Realty assist you with applying for your loan.

For a lot of people, applying for mortgage financing is one of the most troublesome parts of purchasing a home, but it doesn't have to be. I have a close relationship with various lending companies in Annapolis, and they've helped me realize a few things that will make the process of applying for a loan much easier.

1 – Assemble a list of questions regarding your loan program

Make sure you bring a list of questions if you don't perfectly understand the ins and outs of the various programs. I or one of my lenders can assist you with understanding the advantages and disadvantages of each one, because it can be a challenge to know the characteristics of fixed and adjustable rate mortgages.

2 – Determine when you want to lock

Locking in a rate indicates that the mortgage lender commits to the mortgage interest rates for the loan – ordinarily at the time the loan application is received. By floating the rate, you can lock the rate anytime between the loan application day and closing. Those who choose to float believe that the interest rates will fall in the near future. Click here to see the outlook for the next 90 days of interest rates.

3 – Determine if you want to pay additional points to lower your interest rate

Typically you can elect to pay additional points to lower the interest rate of your mortgage loan. Each point is 1 percent of the loan and is payable in cash at the time of closing. Click here to use our points calculator. This tool will assist you in deciding if buying points is right for you.

4 – Compile your paperwork

Obtaining a loan requires a lot of paperwork, so you should spend some time getting all your documents together. Click here for a list of typical loan documentation.