With the current governmental and economic instability, America waits anxiously for a solution. While the Republicans and Democrats are working to reach a compromise, meanwhile 800,000 “non-essential” employees continue to be furloughed — meaning many governmental services and agencies are still shut down until further notice.
What does this mean for prospective homebuyers? Expect to see a delay in closings.
When America was hit with the housing crisis a few years back, the government set certain rules in place to prevent fradulent mortgages. Now, mortgage lenders are required to verify mortgage applications with the federal government; mainly the Social Security Administration and the Internal Revenue Service. Since the “non-essential” governmental employees currently can’t work, brokers are now unable to verify services like they could in the past.
Undoubtedly, mortage lenders are searching for work arounds and ways to continue with loan verifications, but the current situation does make the situation more difficult for them. Expect to experience a longer wait in closings until things are cleared up in the White House.
For more information about how the government shutdown might affect your housing situation, contact me at: