Applying for a loan

Applying for the mortgage loan can be one of the most demanding aspects of buying a home, but it doesn't have to be. I have a close business relationship with various mortgage lenders in the Annapolis area, and they've helped me recognize some things that will make the process of applying for a loan uncomplicated.

1 – Make a list of questions about your loan program

Make sure to have a list of questions if you don't perfectly understand the pros and cons of the various loan programs. It can be a challenge understanding 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 both programs.

2 – Determine when to lock

Locking in designates that the lender holds to the mortgage interest rates for the loan – commonly at the time the loan application is presented. By floating the rate, you can lock the rate anytime between the day you apply for your loan and the issuing of closing documents. Buyers who choose to float conclude 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 reduce your rate

Usually you can decide 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 closing. Click here to use our points calculator. This tool will help you decide if purchasing points is right for you.

4 – Bring your paperwork

Obtaining a loan requires a lot of paperwork, so you should spend some time getting all your documentation together. Click here for a list of normal loan documentation.