There is a challenging market for real estate, where a great number home buyers are competing for an outnumbered inventory home listed for sale. If you’re looking into buying a home, one way to show sellers that you are serious in your home search is getting pre-approved for mortgage, but how come there’s a lot of paperwork compared to transactions from ten to twenty years ago?
There are two reasons why the loan process is more tedious today compared any time in history. First, there is a new government set guideline that requires the bank to prove beyond any doubt that you are capable of paying the mortgage, considering the housing crisis where numerous “qualified” people couldn’t make payments for mortgage. This incident caused millions of families to lose their home, and pushed the government to make necessary action.
Second, the banks never what to be in the real estate business. Being forced to take responsibility in liquidating millions of foreclosures and negotiating another million of short sales, banks refuses to repeat what happened in the past. Therefore, that rather make sure that everything in the application is accurate.
However given the strict paperwork requirements, buyer nowadays are allowed to get mortgage rates that is at historically low rates compared to the past decade or two. If you’d like to be saved from all the paperwork for your real estate transactions, give me a call at (704) 237-0313 or (704) 617-0847.
Source: Keeping Current Matters