Let Berkshire Hathaway Home Services PenFed Realty assist you with applying for a loan in Annapolis.

When purchasing a home, applying for financing is distressing for many people, but it doesn't have to be. I have a close business relationship with a lot of lenders in the Annapolis area, and they've helped me realize a few things that can make the process of applying for a loan very manageable.

1 – Assemble a list of questions about your loan program

Make sure you have a list of questions if you find that you do not thoroughly realize the ins and outs of all the different programs. Oftentimes, it can be hard to understand the distinctions between both fixed and adjustable rate mortgages. I or one of my lender contacts can assist you in understanding the advantages and disadvantages of each one.

2 – Decide when you want to lock

By locking in a rate, a mortgage lender is committing to the interest rates for the loan – ordinarily at the time the loan application is submitted. By floating the rate, you can lock the rate anytime between the day of your loan application and issuance of closing documents. Buyers who opt to float conclude that the interest rates will drop 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 rate

When you choose to pay additional points to lower the rate of your mortgage loan, you will pay for them in cash at the time of closing. Each point is 1 percent of the loan. To decide if buying points is right for you, click here to use our points calculator.

4 – Compile your paperwork

Acquiring a mortgage loan requires a lot of paperwork, so you should take some time to get your documents together. Click here to get a list of normal loan documentation.