Navigating Mortgage Paperwork

Dated: December 5 2017

Views: 182

Imahttp://christina.buyinginaustin.com/ge title


Why is there so much paperwork mandated by the lenders for a mortgage loan application when buying a home today? It seems that they need to know everything about you 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 proves beyond any doubt that you are indeed capable of paying the mortgage.


During the run-up to the housing crisis, 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.


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 around 4%.

The friends and family who bought homes ten or twenty years 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 1990s and 6.29% in the 2000s).

If you went to the bank and offered to pay 7% instead of around 4%, they would probably bend over backward 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.


Interested in Buying or Selling a Home/Investment Property? 
Please contact me anytime for a Free Market Value Analysis.

http://christina.buyinginaustin.com/ 

 Download my app to search for properties by texting 'Christina' to 512-270-7326 



Christina Haverty

REALTOR®, GREEN, GRI, CNE

512 693 8604 office /512 632 3162 cell 

http://christina.buyinginaustin.com/

Turning Savvy, Informed Austin Area Urbanites into Successful Homeowners, Investors, Sellers and Leaser’s!

Download my app to search for properties by texting 'Christina' to 512-270-7326

Blog author image

Christina Haverty

Turning Savvy, Informed Austin Area Urbanites into Successful Homeowners, Investors, Sellers and Leaser’s!....

Latest Blog Posts

Mi Pueblito

Taking time off from Real Estate and enjoying a little R&R are necessary from time to time, even during this pandemic.For this getaway I decided to take a friend that was visiting from California

Read More

The New Normal A Strong Housing Market Expected To Continue Into 2021

“2020 will be known for a lot of things, and a record-breaking year for real estate will certainly be one of its more unexpected legacies,” prominent economist Daryl Fairweather said.1 And he

Read More

5 Secrets Buyers And Sellers Must Know About Virtual Home Tours

For years now, virtual home tours have helped real estate buyers far and wide find the perfect home. From long-distance military personnel being relocated, to investors expanding their portfolio, to

Read More

2020 Has Brought A Lot Of Changes And Good Food Second Bar And Kitchen

This year has brought lots of changes, uncertainty, triumphs and defeats.I've been coping with 2020 by immersing myself in work and fitness. I've been a healthy eater all my life and have worked

Read More