Thinking about financing your new home?

When purchasing a home, applying for the mortgage loan is a exasperating event for a lot of people, but it doesn't have to be. I have a close business relationship with various lending companies in the Annapolis area, and they've helped me understand some things that will make the loan application process much easier.

1 – Assemble a list of questions about your loan program

Be sure to have a list of questions with you if you don't totally realize the advantages and disadvantages of all the different loan programs. Oftentimes, it can be a challenge to understand the distinctions between fixed and adjustable rate mortgages. I or one of my lenders will be able to assist you with understanding the advantages and disadvantages of each program.

2 – Determine when to lock

Locking in designates that the mortgage lender holds to the interest rates for the loan – normally at the time the loan application is presented. 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. Those who opt to float presume that interest rates will drop 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 elect to pay additional points to lower the rate of your loan. Each point is 1 percent of the mortgage loan and is payable in cash at the time of closing. If you're unsure if purchasing points is the best option for you, click here to use our points calculator.

4 – Compile your paperwork

Getting a loan requires lots of paperwork, so you should take some time to get all your documentation together. Click here to get a list of common loan documentation.