Why Is There So Much Paperwork Required to Get a Mortgage

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

Good Morning! Welcome to this week’s Miami Real Estate Break.

This week we wanted to touch on a topic that many of our buyers ask us when they are under contract, “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. Why Is There So Much Paperwork Required to Get a Mortgage

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.

However, there is some good news in the situation.

The housing crash that mandated that banks be extremely strict on paperwork requirements also allowed you to get a mortgage interest rate around 4%. The friends and family who 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 1990s and 6.29% in the 2000s).

If you went to the bank and offered to pay 7% instead of around 4%, they would probably bend over backward to make the process much easier.

Bottom Line

Instead of concentrating on the additional paperwork required, let’s be thankful that we are able to buy a home at historically low rates.

This week’s market update was about the Miami Shores neighborhood. Check it out now.

Miami Shores Real Estate Market Update 12/2017

Please note. This video was from our Facebook live post.
The open house was this past weekend at 7600 NE 8th Avenue in Belle Meade.
If you would like to arrange a private showing, please call us at 305-793-8965.


Miami Real Estate Neighborhood Updates

Ok, let’s get right into all the latest listings, price reductions, and solds from some of the popular neighborhoods of Miami and Miami Beach.

We are in the process of revamping our weekly updates and will add more neighborhoods bit by bit. Enjoy!

Biscayne Park Real Estate info

Coconut Grove Real Estate info

Coral Gables Real Estate info

Miami Beach Real Estate info

Miami Shores Real Estate info

North Bay Village Real Estate

Pinecrest Real Estate


WHAT’S NEXT?

  • Call Jamey or Ognjen for an FREE consultation today:  305-793-8965
  • Join us in our Facebook Page

If you own a home or condo in Miami or Miami Beach and you’re considering selling, GIVE US A CALL.  Our market is very competitive and to sell in today’s market, you need an experienced agent to help you sell faster and get top dollar. We would love to show you our savvy marketing and digital plan that allows properties to sell faster.

If you’re a buyer, let us know EXACTLY what you’re looking for, and I can set you up in our VIP MLS registry. This data is way more accurate than what you will find online on your on own, and you will be notified of properties as soon as they hit the market.

Miami real estate is like every other in regards to today’s market condition it’s all about market supply/demand, condition, location, and price. If you have any questions about buying or selling in today’s market, give us a ring, and one of us can go over what you can expect today:  305-793-8965

blog post info from our KCM blog

image by unsplash @canva

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About Jamey Prezzi

Jamey Prezzi serves the residential real estate market from the South of Miami to parts of Broward and all neighborhoods in between. She works in collaboration with her husband, Ognjen Prezzi at ONE Sotheby’s International Realty.

Recognized as Top Producers over the last 12 years, they are committed to their customers as well as their local real estate community.

Whether you are looking to sell your home or buy a new one, they have an in-depth market knowledge and can help guide you successfully through the neighborhoods, different types of homes and what to expect when selling or purchasing a home in South Florida.

Their mission is to provide an over the top level of service by setting their clients up to succeed from the very beginning through providing sound advice, solid strategies, and following through with an “all hands on deck” approach throughout the sales process.

They have a local real estate blog with over 800 blog topics and a popular youtube channel with more than 100 videos.

Jamey is originally from South Carolina and Virginia. She resides in Miami Beach with Ognjen and their son.

Miami Real Estate Break

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