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

Applying for mortgage financing is one of the most distressing aspects of purchasing a house, but it doesn't have to be. Having connections with various lenders in the Annapolis area has helped me realize some things that can make the process of applying for a loan very manageable.

1 – Make a list of questions about your loan program

Make sure you bring a list of questions if you don't totally understand the pros and cons of the different programs. I or one of my trusted lenders can help you understand the advantages and disadvantages of each one, because it's a challenge to know the differences between fixed and adjustable rate mortgages.

2 – Determine when you want to lock

When you lock in the rate, your lender is sure to keep to the interest rates for the loan – typically at the time the loan application is presented. By floating the rate, you can lock the rate at any time between the day you apply for your loan and issuance of closing documents. Those who decide to float conclude the interest rates will drop 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 rate

If you decide to pay additional points to lower the rate of your mortgage loan, you'll pay for them in cash at the time of closing. Each point is 1 percent of the loan. Click here to use our points calculator. This tool will assist you in determining if buying points is the best option for you.

4 – Gather your paperwork

Getting a loan requires a lot of paperwork, so you should spend some time getting all your documentation together. Click here to get a list of typical loan documentation.