Berkshire Hathaway Home Services PenFed Realty can assist you in financing your home.

Applying for a loan can be one of the most demanding elements of buying a home for a buyer, but it doesn't have to be. I have a close relationship with a lot of mortgage lenders in Annapolis, and they've helped me recognize a few things that make the loan application process easy.

1 – Assemble a list of questions about your loan program

If you find that you don't fully realize the advantages and disadvantages of all the different loan programs, make sure to have a list of questions. I or one of my trusted lenders will help you understand the advantages and disadvantages of both programs, because it is hard to understand the characteristics of fixed and adjustable rate mortgages.

2 – Determine when you want to lock

When you lock in a rate, it means that a lender guarantees the interest rates for the loan – typically at the time the loan application is submitted. By floating the rate, you can lock the rate at any time between the day of your loan application and closing. Buyers who prefer to float think interest rates will plunge in the near future. Click here to see the outlook for the next 90 days of interest rates.

3 – Decide if you want to pay additional points to decrease your rate

Usually you can decide to pay additional points to lower the interest rate of your loan. Every point is 1 percent of the mortgage loan and is payable in cash at closing. Click here to use our points calculator. This tool will help you determine if buying points is the best option for you.

4 – Bring your paperwork

Acquiring a mortgage loan requires lots of paperwork, so you should spend some time getting all your documentation together. Click here for a list of normal loan documentation.