Impacts of the Government Shutdown
With the current shut down, I wanted to update you on how this could potentially impact loans for current and future property. If this shut down lasts 2-3 days we do not think it will have a major impact; 2-3 weeks is a totally different story though.
Below are the specific types of loans and the areas of concern for each
- USDA - Office is currently closed so no new commitments can be issued. Essentially unless you are already clear-to-Close, no USDA loans will Close.
- FHA - Office is currently closed. So if your loan has not already been assigned an FHA case number, you will be delayed until they are back in business.
- Self Employed Borrowers - They are required to get IRS transcripts back to verify their tax returns. This will have to be completed by you, as a buyer, on your own thru the following website: www.irs.gov.
- Government Employees - Some branches of the government are currently on Furlough (meaning no work no pay). This could potentially cause a delay.
- Domino effect - Even if your loan does not fall into the above category as you know a loan down the chain could be delayed which could affect your loan. Please make sure to check with your agent so you can get out in front of any delays.
- Delays once shut down is over - Again, it depends upon how long the shutdown is but, you can imagine the first day they are back open they will have a back log of loans to approve/review. Delays will not instantly go away the day the shutdown is over.
If you are currently under Contract, you will want to reach out to your lender with questions. Our preferred lenders will be reaching out to you if there are any issues as well.
© Debe Maxwell | The Maxwell House Group | CharlotteBroker@icloud.com | Impacts of the Government Shutdown