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

For many people, applying for financing is one of the more distressing aspects of buying a home, but it doesn't have to be. Being close with a lot of mortgage lenders in Annapolis has helped me recognize a few things that make the process of applying for a loan easy.

1 – Organize a list of questions regarding your loan program

If you don't thoroughly realize the advantages and disadvantages of all the various loan programs, be sure to bring a list of questions. I or one of my trusted lenders can help you understand the advantages and disadvantages of each one, because it can be a challenge to understand the differences between both fixed and adjustable rate mortgages.

2 – Decide when to lock

When you lock in the interest rate, a lender is guaranteed to commit to the mortgage interest rates for the loan – normally at the time the loan application is submitted. By floating the rate, you can lock the rate at any time between application and the issuing of closing documents. Those who decide to float believe the interest rates will dip 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

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

4 – Bring 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 general loan documentation.