Your Lake of the Ozarks Mortgage Lender: Why is There So Much Paperwork Required for a Mortgage?

Friday, December 15, 2017

Why is There So Much Paperwork Required for a Mortgage?

One of the most time-consuming aspects of getting a mortgage loan at the Lake of the Ozarks is filling out all of the paperwork and providing all the proper documentation. If you miss something, your loan can easily get delayed. So why is all this paperwork required? Keep reading as your Lake of the Ozarks mortgage lender explains the reasoning.

New Government Guidelines

People who bought homes twenty years ago feel as though the mortgage loan process was much less complicated, and that's true. The government has since set new guidelines that require more detail, provided through more paperwork. The government wants banks to show beyond a doubt that a borrower is capable of paying back the home loan. During the years leading up to the housing crisis, many people qualified for homes that they would never be able to pay back. Unfortunately, this led to millions of families losing their homes. These new guidelines were created by the government to insure that this would not happen again.

Banks Don't Want to Be in the Real Estate Business

After the housing crisis, when all those families lost their homes, the banks were forced to take on the responsibility of those homes. They had to liquidate millions of foreclosures and negotiate millions of short sales. Banks don't want more foreclosures, just as the government doesn't. This requires banks to double- and triple-check everything on a mortgage application. While the housing crash is responsible for strict paperwork guidelines, it's also responsible for amazing interest rates. In the 90s, people were paying an average rate of 8.12%. Today, borrowers can qualify for interest rates around just 4%!

While the excess paperwork may seem daunting, it's in your best interest as the borrower. No one wants to lose their home, and qualifying for a mortgage you can't afford is an easy way for that to happen. Plus, now you can get great mortgage interest rates on your new home at the Lake of the Ozarks!

As your mortgage lender at the Lake of the Ozarks, I'm here to help you with the paperwork, as well as the rest of the mortgage process. For all your Lake of the Ozarks home financing needs, give us a call at 573-746-7211. I'll discuss your loan options, offer competitive interest rates and back it up with the first-class service you deserve, I guarantee!

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