“Why do I have to provide so many documents when applying to purchase a new home?”

“It seems like the bank needs to know every detail about my financial background, previous residences and additional verification from my employer and the IRS.”

“I’ve heard from my family and friends that the process was so simple just 7-10 years ago when they purchased their homes.”

There are two very good reasons that the loan process is much more difficult for today’s buyer than perhaps any time in history.

  1. Our government developed new guidelines that demand banks prove beyond any doubt that you are absolutely capable of affording your mortgage. During the run-up in the housing market, many types of mortgage loans people “qualified” for were mortgages that couldn’t be paid back. This led to 7 million+ families losing their homes. Our government is determined to make sure that never happens again.


  1. The banks don’t want to be in the real estate business. The last 7 years, banks had to take on the responsibility of liquidating 7 million+ foreclosures and also negotiating another million plus short sales. Banks don’t want to go through that again.  You can be sure they are double checking everything this time, making sure affordability and property values are where they need to be, to secure stability for all involved.


Silver lining, since late Summer 2014, Lenders are starting to loosen up a bit and not require quite as much documentation.         BIGGEST BENEFIT of all:  mortgage interest rates are still at historic lows.

The friends and family who bought homes 7-10 years ago experienced a simpler mortgage application process but also paid a much higher interest rate (the average 30 year fixed rate mortgage was 8% in the 1990’s and 6.25% in the 2000’s).

Bottom Line

If you are looking to purchase or refinance a home, a little extra paperwork in order to get the lowest rates in history is a fair trade.

If in California and want to discuss your ability to buy a Home, Construct or Refinance… Call me today! I will put my almost 20 years of experience and expertise hard to work on your behalf.

I can easily be found at:

We know it seems like there is an awful lot of paperwork to be filled out when seeking a home loan in CA. There’s a very good reason for that, and that is, there’s an awful lot of paperwork to be filled out and sent in. But hey, look on the bright side. At least there are no fees. Oh wait, yes there are fees. (Ours are some of the lowest) Oh well, just keep visualizing that beautiful new home 🙂