Are you ready to get pre-approved to buy your own home? Don't be surprised by all the paperwork the bank will require for a mortgage loan application when buying a home today. It seems that the bank needs to know everything about us and requires several separate sources to validate each and every entry on the application form.
Many people that are re-entering the market to purchase another home can remember that the loan process was a hundred times easier ten to twenty years ago. But there are two very good reasons that the loan process is much more stringent 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 paying the mortgage.
During the run-up in the housing market, many people ‘qualified’ for mortgages that they could never pay back. This led to millions of families losing their homes. The government wants to make sure this can’t happen again.
2.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 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.
The Good News
The housing crash that mandated that banks be extremely strict on paperwork requirements also allow you to get a mortgage interest rate around 4%.
People that bought homes ten or twenty years ago experienced a simpler mortgage application process but also paid a higher interest rate (the average 30 year fixed rate mortgage was 8.12% in the 1990’s and 6.29% in the 2000’s).
Embrace The Requirements
Instead of fretting over the additional paperwork required, we need to be thankful that we are able to buy a home at historically low rates, and that the process helps to prove we are really ready to take on the responsibility of a home mortgage.
Author:Susan Florsch Phone: 817-733-7791 Dated: March 1st 2016 Views: 3,327 About Susan: After relocating to the DFW area over 10 years ago, I have lived between Fort Worth and Arlington,. ...
View our latest blog posts in your RSS reader. Click here to access.
JP And Associates REALTORS (JPAR) is one of the top 100 independently owned brokerages in the US. A full service real estate brokerage firm specializing in real estate sales and marketing services with multiple offices across the US and expanding quickly. JPAR is also one of Real Trends top 500 Brokerages in the US for volume and sales and in the top 1% in the US for sales.
Our mission is to provide extraordinary services and exceed our clients’ expectations by always committing to the highest levels of professionalism, ethics and standards in the real estate industry.
JP and Associates REALTORS is a real estate company with a solid structure and foundation built around service and productivity. We believe in providing a fun and rewarding environment for all our REALTORS® and therefore always ready to support our REALTORs® Associates in any market and in any condition. All our REALTORs® will always strive to close more transactions in a given year than the average REALTOR®. Our goal is to recruit and retain the most professional, better trained REALTORs Associates in the local market.
If you are interested in a new career in real estate or already have a real estate license but wish to learn more about our company please contact us directly to set up an interview. We offer our agents a 100% commission plan, company leads, training and mentoring and coaching from TOP Producers with no office, desk fees or monthly marketing fees ever. We are a full service brokerage at a transaction fee cost.
At JP And Associates REALTORS we strive to exceed our Clients AND our Associates expectations.
If you’ve ever wondered how and why things happen in the City of
"I have known Rena Bell Clark for a while and I can truly tell you that she is a dedicated and passionate individual who loves people and what she does. She is an excellent listener and great communicator. I can attest she will do her due diligence for the people she serves.-