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

When purchasing a home, applying for the mortgage loan is very distressing for most people, but it doesn't have to be. I'm very connected to a lot of mortgage lenders in Annapolis, and they've helped me learn a few things that can make the loan application process pretty simple.

1 – Put together a list of questions regarding your loan program

If you do not perfectly understand the pros and cons of the various programs, be sure you bring a list of questions with you. I or one of my lenders can help you understand the advantages and disadvantages of each program, because it is a challenge to know the characteristics of both fixed and adjustable rate mortgages.

2 – Decide when to lock

By locking in the rate, the lender is committing to the interest rates for the loan – usually 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 the loan and the issuing of closing documents. Buyers who elect to float believe that 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 decrease your interest rate

Generally you can elect to pay additional points to lower the interest rate of your loan. Every 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 right for you.

4 – Compile your paperwork

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