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

We are often asked why there is so much paperwork mandated by the bank for a mortgage loan application when buying a home today. It seems that the bank needs to know everything about us 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.

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 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.

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 allows you to get a mortgage interest rate as low as 3.43%, the latest reported rate from Freddie Mac.

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 1990’s and 6.29% in the 2000’s). If you went to the bank and offered to pay 7% instead of less than 4%, they would probably bend over backwards 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.

Local Market Trends For Tracy and Mountain House

Market Stats For August

The following information is from the local MLS database, as of Sept. 1, 2016 and is compared to(August 1, 2016).   Prices are staying steady this month! The amount of listings are also about the same too. But demand is still strong and good homes get multiple offers especially homes priced under $400,000. We only have a 1 &1/2 months supply of inventory.  A healthy market has 6 months supply. Prices are increasing as a result of this but appraisals are not keeping up. Be very careful if you or your buyer removes their appraisal contingency.  Buyers are still eager to buy and they are watching the new listings as they hit the market. And with fewer choices buyers are competing to get their offers accepted.   Interest rates are staying down with 30 yr fixed at 4.35% and FHA/VA at 3.75%. 15 yr is 3.375. Still the lowest rates!　New home construction projects are popping up more in the area and even though the prices are a little higher, there are still good deals out there in the new communities.  Don't forget...We can represent you with the new home builders too!  Don't go with out being represented!

  　If you have been on the Fence about selling your home then NOW is  the time to sell. We need more listings! We only have a 1.5 month supply of homes to sell.  This is a serious SELLER'S MARKET.   If you are curious to see how much equity you have in your house, give us a call for a market analysis! 209-833-7777 e-mail is sales@tracyhomes.com. Or go to www.TracyHomeValue.com to get an automated market analysis. 

Tracy, CA

ACTIVE STATUS

Total # of residential properties for sale in the city of Tracy: 160 (163)

# of REO (foreclosures): 2 (1)

# of Short Sales: 5 (6)

Average # of days on market: 30 (26)

#New Construction:  7

The median price of all homes for sale in Tracy: $439,000 ($460,000)

PENDING STATUS

Number of properties currently under agreement: 157 (145)

# of REO: 1 (2)

# of Pending Short Lender Approval: 9 (10)

Median pending price: $434,950 ($425,000)

SOLD STATUS

Residential property sold over previous 30 days: 89 homes (92)

REO's sold in the last month: 1 (3)

Short sales sold in the last month: 3 (0)

Median sale price: $426,000 ($428,000)

Median # of days on the market:  13 (12)

　

Mountain House, CA

ACTIVE STATUS

Total # of residential properties for sale in the city of Mountain House: 56 (46)

# of REO (foreclosures): 0 (0)

# of Short Sales: 0 (0)

# of New Construction: 7 (5)

Average # of days on market: 23 (26)

The median price of all homes for sale in Mountain House: $589,886 ($590,452)

PENDING STATUS

Number of properties currently under agreement: 52 (58)

# of REO: 0 (1)

# of Pending Short Lender Approval: 0 (1)

# New Construction: 8

Median pending price: $551,057 ($547,944)

SOLD STATUS

Residential property sold over previous 30 days: 31 homes (31 homes)

REO's sold in the last month: 1 (1)

Short sales sold in the last month: 0 (0)

New Construction sold: 2

Median sale price: $520,000 ($520,000)

Median # of days on the Market: 24  (11)

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HOMES SOLD IN TRACY IN AUGUST

Take a look at this chart to see the SOLDS in Tracy for August.  Call us for a free Market Analysis on your home!  209-833-7777.

		Address		Beds	Baths	Sq Ft	List	Sell	DOM
6086	W	Linne	Rd	4	3 (3 0)	2790	895000	850000	106
100		Cedar Mountain	Dr	4 (5)	3 (3 0)	2373	430000	428000	112
1700		Whirlaway	Ln	6	5 (5 0)	3610	535000	535000	16
1088		Sausalito	Way	3	3 (2 1)	3168	689950	690000	34
979		Cherry Blossom	Ln	4	3 (2 1)	2032	445000	450000	35
1633		Union Lane		4	3 (3 0)	2067	465990	443000	132
1621	W	12th	St	4	2 (2 0)	1527	360000	355000	70
27056		Maurland	Ln	4	3 (2 1)	2245	519000	490000	51
27055	S	Leeward	Way	5	6 (5 1)	7459	1588000	1500000	55
1978		Ponderosa	Ln	4	3 (3 0)	3235	579900	579900	26
2121		Iroula	Way	5	3 (3 0)	2440	460000	460000	53
1136		Saint Clair	Pl	4	2 (2 0)	2145	465000	465000	96
1245		Audrey	Dr	4	2 (2 0)	1458	329000	340000	3
1451		MCDERMOTT DR		4	3 (2 1)	1567	329950	350000	5
582		General Lane		6	5 (4 1)	4098	635000	625000	28
450		Boleyn	Ct	4 (5)	3 (2 1)	1567	349950	349500	35
4885		Dandelion	Loop	4	3 (2 1)	2381	449000	455000	56
621		Ben Ingram	Ct	5	4 (4 0)	3023	499000	499000	54
1483		Whittingham	Dr	3	2 (2 0)	1554	425000	400000	42
2121		Iberis	Ct	4	3 (3 0)	2376	439000	430000	72
2805		Atlanta		3	2 (2 0)	1408	350000	353000	9
1724		Woodland	Ln	5	3 (3 0)	3159	494000	485000	44
705		Bogetti	Ln	3	2 (2 0)	1122	389000	373000	43
1300		Barons	Ct	3	3 (2 1)	1709	370000	385000	23
909		Roosevelt	Ave	2	1 (1 0)	819	279000	279000	28
2060		Tammi	Ct	4	3 (2 1)	2428	450000	452000	39
1360		Claremont	Dr	4	3 (2 1)	1831	425000	420000	44
1671		Baigorry	St	4 (5)	4 (3 1)	3767	620000	617000	45
1921		Deborah	St	3	1 (1 0)	956	299000	305000	11
671		Scarlett	Pl	4	3 (2 1)	1598	410000	390000	13
5801		Durham Ferry	Rd	3	2 (2 0)	2067	865000	870000	2
1022		Westbury	Ct	2	3 (2 1)	1271	298700	284000	16
1725		Gloria	Cir	4	3 (3 0)	2443	435000	430000	31
770	S	Centre Court	Dr	3	2 (2 0)	1711	425000	425000	15
27214		Lillegard	Ct	4 (5)	3 (2 1)	3026	839999	839999	7
489		Terra Nova	Ct	4	3 (2 1)	2432	465900	465000	26
227		James W Smith	Dr	3 (4)	3 (2 1)	1969	435000	440000	23
573		Glenbriar	Cir	4 (5)	3 (3 0)	2817	545000	535000	19
365		Glenbrook	Dr	4	2 (2 0)	2453	520000	525000	6
1660		Jasmine		4 (8)	3 (3 0)	2121	425000	410000	30
2131		Bridle Creek	Cir	3 (4)	3 (2 1)	1565	395000	404500	5
369		Burlington	Dr	4	3 (3 0)	2298	430000	440000	6
585		Pacheco	Dr	3 (4)	3 (2 1)	2036	415000	415000	17
921	N	Hickory	Ave	3	2 (2 0)	1325	359950	355000	25
1599		Cherry Blossom	Ln	5	4 (3 1)	2910	469950	465000	25
2373		Fortuna	Ln	5	3 (3 0)	2563	449000	460000	10
1940		HARVEST LANDING	Ct	3	3 (2 1)	1902	413950	426000	7
2363		Gretchen Elizabeth	Ct	4	3 (3 0)	2350	529000	490000	35
800		Petrig	St	4	3 (3 0)	2582	475000	475000	14
1966		Clearbrook	Ct	4	3 (3 0)	2077	395000	402000	13
419		Burlington	Dr	3	3 (2 1)	1771	379000	393000	3
897	N	Hickory	Ave	3	2 (1 1)	1040	315000	325000	14
4261		Glenhaven		4	3 (3 0)	2447	489900	493000	8
565		Cape Breton		4	3 (2 1)	2241	455000	455000	9
540		Allisha	Ln	3	2 (2 0)	1172	329950	330000	12
4593		Morning Brook Ln.		4	3 (2 1)	2530	399950	415000	12
2940		Compton	Pl	4	3 (3 0)	2527	475000	475000	12
8358		Rinauro	Ct	5	4 (3 1)	4817	1040000	1008534	42
155	E	12th	St	2	1 (1 0)	976	280000	291000	5
1050		Winter	Ct	3	3 (2 1)	1630	389000	397000	7
1471		Claremont	Dr	3 (4)	2 (2 0)	2034	440000	440000	15
1393		Chaplin	Ct	4 (5)	3 (3 0)	2651	524950	525000	5
1651		Hurley	Ct	3	2 (1 1)	1087	332500	331125	12
1845		Foxwood	Dr	3	2 (2 0)	1441	376000	383000	27
660		Saffron	Dr	4	3 (2 1)	2285	469900	469900	6
1940		Foxwood	Ct	3	2 (2 0)	1628	425000	414000	4
2859		Hawkins	Ln	3	2 (2 0)	1483	369000	385000	13
2775		Atlanta	Dr	3	2 (2 0)	1558	380000	380000	5
28361	S	Depot Master	Dr	4	3 (2 1)	3076	579950	591000	12
1354		Ray Harvey	Dr	4	3 (2 1)	1607	395000	402500	1
222	W	Highland	Ave	3	2 (2 0)	1395	358000	357000	11
1990		Village	Dr	3	2 (2 0)	1577	370000	387777	6
513		Veneto	Ct	3	2 (2 0)	1513	389900	410000	12
512		Quail Run	Cir	4	3 (3 0)	2944	495000	500000	93
1042		Darby	Dr	4	3 (3 0)	2239	420000	436000	8
1147		Rosette	Ln	3	3 (2 1)	2070	375000	385000	10
3321		Strawberry	Pl	3	3 (2 1)	1699	399900	400000	5
2772		Remington	Way	4	3 (3 0)	2482	549900	540000	15
1313		Ray Harvey	Dr	3	3 (2 1)	1441	399000	412000	8
1443		Locust	Dr	3	2 (2 0)	1120	339950	340000	2
1914		Raven	Ct	4 (5)	3 (3 0)	2917	475000	497000	10
338	W	21st	St	3	1 (1 0)	1084	247000	247000	37
429		Toni	Ln	3	2 (2 0)	1337	255000	255000	9
830		Winnipeg	Ct	3	3 (2 1)	1735	400000	420000	4
925	W	Eaton	Ave	3	1 (1 0)	1047	305000	320000	4
2115		Olympic	Ave	4 (5)	3 (3 0)	2397	459000	460000	2
1735		Parkside	Dr	5	3 (3 0)	2360	459950	450000	1
437		Glenbriar	Cir	3	2 (2 0)	1421	414126	415000	6
402	W	Emerson	Ave	2	1 (1 0)	1214	229000	215000	1