Warwick | Why Is There So Much Paperwork Required to Get a Mortgage?

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Real Estate Agent with Imagine Properties NY

Warwick | Why Is There So Much Paperwork Required to Get a Mortgage?

 

Did you know that you are legally obligated to tell the buyer about problems that could affect your home’s value, such as foundation damage or environmental hazards like a tendency for flooding or any other major problems with your house? ….in addition, if your home was built prior to 1978, federal law requires that you take several steps to protect the homebuyer from exposure to lead-based paint.  

Click here to read “Should I pay for a pre-listing inspection” 

This is one of the areas where having the right representation to help you sell your home, can give you peace of mind by complying with all the rules and regulations around the home selling process in New York.  

A real estate agent can help tremendously in understanding your liability and walking you through the disclosure procedures prior to putting your home on the market.  

Today, I would like to address about Why Is There So Much Paperwork Required to Get a Mortgage?

 

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. 

 

 

 READ MORE: http://www.rocklandnyhomes.com/warwick-much-paperwork-required-get-mortgage/


???Thinking of selling your home? Let Diane take over the marketing of your property
www.rocklandnyhomes.com - Call or text 845-709-4758 for more information. 

Posted by

Diane Beckmann                               

Imagine Properties

4 Dennis McHugh Court

Tappan, New York  10983

cell:  (845)  709-4758

 

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Topic:
Home Buying
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New York Orange County Warwick
Tags:
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first time home buyers
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for buyers
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Rainmaker
3,983,819
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

The answer is simple.  Everytime there is a major issue or someone trying to scam the system we get more paperwork.

Dec 05, 2017 09:58 AM #1
Rainmaker
1,246,245
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

William Feela is right ... past "scams" have made it necessary for banks to check and prove an ability to repay a loan.  There's no getting around it either, Diane Beckmann ... you must comply.  The choice of Lender does help immensely ...

Gene

Dec 05, 2017 12:31 PM #2
Rainer
65,994
Golden1 Agents
San Mateo, CA

Thanks for sharing.

Dec 07, 2017 02:32 AM #3
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Rainmaker
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Diane Beckmann

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