Why Does Getting a Mortgage Involve So Much Paperwork?
KCMBlog.com nailed it by saying that when this much paperwork wasn’t involved rates were at 8.12%. It really is not that difficult getting a mortgage if you are willing to provide whatever is asked for. Banks do not want more than they need but due to what has happened in the past they have to protect themselves. If you were lending hundreds of thousands of dollars of your own money wouldn’t you want to make sure you got repaid?
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. 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 home. The government wants to make sure this can’t happen again