Are you going to finance a home? Berkshire Hathaway Home Services PenFed Realty can help.

For most people, applying for a mortgage loan is one of the most troublesome parts of buying a home, but it doesn't have to be. I have a close business relationship with several mortgage lenders in the Annapolis area, and they've helped me recognize some things that make the loan application process pretty simple.

1 – Create a list of questions about your loan program

Make sure to have a list of questions with you if you don't totally realize the advantages and disadvantages of all the various programs. Oftentimes, it can be a challenge to understand the differences between both fixed and adjustable rate mortgages. I or one of my lenders will be able to help you understand the advantages and disadvantages of each one.

2 – Determine when to lock

By locking in an interest rate, a mortgage lender is committing to the mortgage interest rates for the loan – ordinarily at the time the loan application is sent in. By floating the rate, you can lock the rate at any time between the day of your loan application and at the time of closing. Buyers who decide to float conclude interest rates will dip 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 decrease your interest rate

When you opt to pay additional points to lower the interest rate of your mortgage loan, you'll do so by paying for them in cash at the time of closing. Every point is 1 percent of the mortgage loan. Click here to use our points calculator. This tool will assist you in deciding if buying points is right for you.

4 – Bring your paperwork

Getting a loan requires lots of paperwork, so you should spend some time getting your documents together. Click here for a list of general loan documentation.

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