Do you want to finance your home? Berkshire Hathaway Home Services PenFed Realty can help.

Applying for mortgage financing can be one of the most distressing 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 understand a few things that will make the loan application process pretty simple.

1 – Compile a list of questions regarding your loan program

Make sure to bring a list of questions if you do not totally comprehend the ins and outs of all the various programs. I or one of my lenders will help you understand the advantages and disadvantages of each one, because it is a challenge to understand the distinctions between fixed and adjustable rate mortgages.

2 – Decide when to lock

Locking in the interest rate designates that your lender keeps to the mortgage interest rates for the loan – typically at the time the loan application is received. By floating the rate, you can lock the rate anytime between the day you apply for your loan and the issuing of closing documents. Those who choose 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 – Determine if you want to pay additional points to reduce your interest rate

Generally you can elect to pay additional points to lower the rate of your mortgage loan. Each point is 1 percent of the mortgage loan and is payable in cash at the time of closing. Click here to use our points calculator. It will help you decide if purchasing points is the best option for you.

4 – Compile your paperwork

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