Why Is So Much Paperwork Required To Get A Mortgage?
Sardool Bhogal. Director-Public-Govt Relations International Trade-Business Consultant.
International Trade and Business consultant. Ardent community builder. Toastmaster, Available for Speaking engagements/ serve on Board of Directors.
When buying a home today, why is there so much paperwork mandated by the lenders for a mortgage loan application? It seems like they need to know everything about you. Furthermore, it 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 other 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.
2. The banks don’t want to be in the real estate business.
The housing crash that mandated that banks be extremely strict on paperwork requirements also allowed you to get a low mortgage interest rate.
If you went to the bank and offered to pay 25% instead of around 20%, down payment, 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.
Call us at 1 877 607 7222 if you have any other questions or need help in finding your dream home or selling the one you live at now.
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