Why So Much Paperwork When Applying For A Mortgage

Why So Much Paperwork When Applying For A Mortgage

We are often asked why there is so much paperwork mandated by the bank for a mortgage loan application when buying a home today. It seems that the bank needs to know everything about us and requires three separate sources to validate each and every entry on the application form. Many buyers are being told by friends and family that the process was a hundred times easier when they bought their home ten to twenty years ago. There are two very good reasons that the loan process is much more onerous on today’s buyer than perhaps any time in history.

  1. The government has set new guidelines that now demand that the bank provebeyond any doubt that you are indeed capable of affording the mortgage. During the run-up in the housing market, many people ‘qualified’ for mortgages that they could never pay back. This led to millions of families losing their home. The government wants to make sure this can’t happen again

  2. The banks don’t want to be in the real estate business. Over the last seven years, banks were forced to take on the responsibility of liquidating millions of foreclosures and also negotiating another million plus short sales. Just like the government, they don’t want more foreclosures. For that reason, they need to double (maybe even triple) check everything on the application.

  3. However, there is some good news in the situation. The housing crash that mandated that banks be extremely strict on paperwork requirements also allowed you to get a mortgage interest rate probably at or below 4%. The friends and family who bought homes ten or twenty ago experienced a simpler mortgage application process but also paid a higher interest rate (the average 30 year fixed rate mortgage was 8.12% in the 1990’s and 6.29% in the 2000’s). If you went to the bank and offered to pay 7% instead of <4%, they would probably bend over backwards to make the process much easier.

Bottom Line

Instead of concentrating on the additional paperwork required, let’s be thankful that we are able to buy a home at historically low rates.

index

Make it a great day!

 About the agent: Richard L McKinney - Realtor,

Local Real Estate Expert &  Nice Guy 

 I'd love to hear from you! What do you think about this blog?

Richard L. McKinney P.A.

& The Results Team

Atlantic Shores Realty Expertise

C) 772.370.8631 

RichardMcKinney.re@gmail.com

 

Selling the Treasure Coast - Port St Lucie, Fort Pierce, Stuart, Jensen Beach, Palm City and Hutchinson Island --- Homes, Condos, Townhomes & Land.

  

 Visit me on the web ....

Port St Lucie Real Estate, Homes,Condos,Townhomes and land for sale in Port Saint Lucie Florida.

 

 www.TreasureCoastMLS.com  -  www.StLucieRealEstate.net

 

Instantly find out the value of your home on the Treasure Coast in just

two simple steps.

 

Connect with me here...

 

                                 


Richard McKinney Headshot
Author:
Phone: 772-370-8631
Dated: November 22nd 2015
Views: 408
About Richard: I have been selling real estate in South Florida since 1998 with a specialization in homes, town hom...

Property Search








RSS Feed

View our latest blog posts in your RSS reader. Click here to access. RSS

Search Blog

Recent Blogs

6 Major Mistakes Made When Selling Your Home -  Home Seller Mistakes when
Condo Just Reduced 2 Bed 2 Bath - Just Reduce to $117,500.Condo For
Cascades At St Lucie West Resort Style 55 Community - This is a beautiful Newly
12741 Refuge Lane Jensen Beach - Ocean Access Remodeled 4 Bedroom

Saved Properties

This is a list of your favorite properties. We will email you if a property is reduced or leaves the market.

Click 'Save' to add a property to this list.

Register / Login

New & returning visitors please enter your information to login.

By clicking 'register' you are agreeing to our terms of use & giving us expressed written consent to contact you.

Questions? Comments? Complaints?

This message will go directly to the head of our team.

Location & Address

Atlantic Shores Realty Expertise
201 SW Port St Lucie Blvd #103
Port St Lucie, FL
772-794-8068


Other Locations