The government shutdown will not prevent people from selling their homes. Nor, will impact buyers who want to purchase homes. Hard to say exactly how it might impact mortgages, but here are a few things that home buyers with mortgages pending might want to keep their eyes on:
- FLOOD INSURANCE– If you’re purchasing a property that requires flood insurance, things might get complicated. The National Flood Insurance Program is administered by FEMA, and they will not be able to issue new plans during the shutdown.
- TAX TRANSCRIPTS– Just about every loan underwriter needs to see tax transcripts from the IRS. Clearly, this may be present issues if a lender doesn’t have some sort of workaround in place.
- SOCIAL SECURITY NUMBER VERIFICATION– The little things that you never think about suddenly become relevant during a shutdown. What happens when the lender tries to verify your social security number with the Social Security Administration? Guess we’ll all find out soon!
For the majority of home buyers, the shutdown should not have a major impact on loan processing. That said, there are several issues that we should all be aware of. If you are currently under contract to purchase a home (mazel tov!) and are unsure if you are impacted, contact your lender and ask for clarification. If you’d like to be under contract to purchase a home, contact us to set up a Home Buyer Consultation.
Edit Credit: Shelter Mortgage’s Grieve Team, whose excellent email update inspired this timely blog post.