Do you want to finance your home?

When purchasing a home, applying for the mortgage loan is very exasperating for a lot of people, but it doesn't have to be. I'm close to a lot of lending companies in Annapolis, and they've helped me understand some things that make the process of applying for a loan easy.

1 – Compile a list of questions regarding your loan program

If you do not totally comprehend the advantages and disadvantages of the various loan programs, make sure you bring a list of questions. It is often a challenge understanding the differences between both fixed and adjustable rate mortgages. I or one of my lenders will be able to help you understand the advantages and disadvantages of each one.

2 – Decide when to lock

When you lock in a rate, it means that your lender keeps to the interest rates for the loan – normally at the time the loan application is presented. By floating the rate, you can lock the rate anytime between the day you apply for the loan and at the time of closing. Those who opt to float conclude 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 reduce your rate

Normally you can opt to pay additional points to lower the rate of your loan. Every point is 1 percent of the mortgage loan and is payable in cash at closing. If you're not sure if buying points is the best option for you, click here to use our points calculator.

4 – Compile 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 general loan documentation.