Applying for a loan with help from Berkshire Hathaway Home Services PenFed Realty

Applying for the mortgage loan is one of the most exasperating parts of buying a house for a buyer, but it doesn't have to be. I have a close relationship with some mortgage lenders in Annapolis, and they've helped me realize a few things that make the loan application process much easier.

1 – Assemble a list of questions about your loan program

Be sure to bring a list of questions if you find that you don't entirely understand the ins and outs of all the various loan programs. I or one of my lenders can assist you with understanding the advantages and disadvantages of both programs, because it's a challenge to know the differences between fixed and adjustable rate mortgages.

2 – Decide when you want to lock

Locking in a rate denotes that a mortgage lender keeps to the interest rates for the loan – generally at the time the loan application is presented. By floating the rate, you can lock the rate anytime between the day of your loan application and at the time of closing. Those who opt to float presume that the interest rates will fall 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 lower your rate

If you choose to pay additional points to lower the rate of your loan, you will do so by paying for them in cash at the time of closing. Every point is 1 percent of the mortgage loan. If you're undecided as to whether or not buying points is the best option for you, click here to use our points calculator.

4 – Bring your paperwork

Getting a mortgage 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.