How is the government shutdown impacting mortgage loans?
Something else to worry about with this government shutdown. It is creating uncertainty everywhere and the Real Estate Market is no exception.
Most loans will still be processed
If you are currently under contract to purchase a home and you are worried about the government shutdown might impact your closing, be sure to check with your lender asap. Most loan programs are not impacted by the government shutdown as most loans are not funded by the federal government. Having said that if you are a federal worker or government contractor and your lender is unable to verify your employment this might cause a delay. In many cases lenders can use your work number to avoid a delay, but be sure to double check. I just checked for one of my buyers. The buyer is a government contractor, but luckily the shutdown does not impact his closing next week.
USDA loans or rural development loans are currently not issuing any loans. The US Department of Agriculture will not issue any new USDA loans during the shut down. If you are under contract using a USDA loan you need to check with your lender immediately
Possibly delays in IRS transcripts
When purchasing a home your lender always has to order IRS transcripts. The shut down could cause a significant delay in getting transcripts back to lenders, which in turn can impact your closing if it is needed for prior to settlement.
Flood Insurance not impacted
The National Flood Insurance Program has been extended prior to the shutdown.
Are you looking to purchase a home? Are you curious to find out how to approach the home buying process? Call me today at 571-446-0002 or check out this home buyers guide.