Is it me or is there a LOT of Paperwork for Mortgages These Days??

No, it’s not just you… many borrowers have the same thought and question as it appears they need three verifications for every single item. And, all the while, the bank seems to want to know every detail about individuals as well.

You might even hear from fellow family members or older friends that when they bought a property years ago, the process was nothing like it is today.

Honestly, the more tedious loan process really comes down to two causes:

1. Banks are really trying to protect themselves from the real estate business. The previous 7 years or so have been colored with many banks having to handle millions of short sales, plus millions of foreclosures. And, they simply don’t ever want to be in this position again, which has resulted in them double and even triple checking all paperwork throughout the application process.


2. The government is doing all they can to ensure that individuals can afford to pay back their mortgage. Similar to the banks, the 7 last years have been hard on the government as so many individuals were “qualified” for mortgages that they were never able to pay back. The government wants to do what they can to ensure countless numbers of families don’t find themselves losing their homes again.

Yet, don’t fail to see the good news in the midst of filling out all the paperwork… the current interest rates on mortgages being around 4% is thanks to the housing crash that caused the laborious paperwork.

At the End of the Day

Look at the bright side of things, while you might be spending more time upfront on the paperwork, be mindful and appreciative of interest rates that are at a record-breaking low.