There are two good reasons why the loan process has become "hair pulling" for today's buyer than perhaps any time in history.
1. The government has set new guidelines that now demand that the bank prove beyond any doubt that you are indeed capable of affording the mortgage. This obviously avoids the fraud that was once a part of the mortgage industry that led to the housing market crash.
2. The banks don't want to be in the real estate business. Over the past several 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 check everything on the application.
The good news is that since the housing crash the interest rate is very low as compared to before the crash. Instead of concentrating on the additional paperwork required, let's be thankful that we are able to buy a home at historically low rates.