Mortgage loan process more tedious
09/27/2010
By Credit.com Staff
Inflation and mortgage rates have remained at astonishingly low levels in recent months, encouraging more prospective homeowners to submit applications for home loans. But real estate professionals say the process of purchasing a home has been muddled by an increase in the amount of paperwork required.
Buyers are now facing tightened lending restrictions, heavier proof of income requirements, mortgage backlogs and home appraisal disparities, according to the Boston Globe. Additionally, lenders are reviewing applicants' income documentation and credit reports more thoroughly and, in many cases, requiring multiple copies. This is largely to prevent another subprime mortgage crisis.
"We are living in a fully documented world at this point," Mortgage Bankers Association research economics vice president Michael Fratantoni told the Globe. "It is burdensome right now, but I think it is necessary."
Consumers planning on purchasing a home should be prepared to provide two copies of their credit report, various documents revealing their income and tax documents from at least three years ago.
