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Day 24 and the partial federal government shutdown is starting to disrupt the Real Estate and Banking industries. Mortgage and housing experts were predicting an array of expanding problems if the budget impasse over funding a southern border wall continues much longer. Experts believe this will slow down an already cooling housing market. The signal of recession is starting to flash.
Things to ask your mortgage professional that could delay your ability to close on your home purchase or refinance:
● Being able to verify employment for government employees
● Borrowers on work furlough will have to return prior to closing
● Unemployment claims or partial work share income not considered
● Validating Social Security numbers (SSI forms) will be disrupted
● IRS 4506, tax transcripts delayed – Jan. 7th the IRS resumed their processing of 4506’s received Dec. 22nd, 2018
● Flood Insurance needs to be re-authorized before May 31st, 2019
● USDA is not issuing mortgage loan note guarantees during government shut down
● FHA case numbers are still being issued until further notice
● Many Government websites are down
There are short and long term non-traditional funding resources that will enable buyers to still purchase quickly without all the documentation required under current banking regulation. Ask me about these options to see if one is right for you.
Sources: Scotsman Guide News and Cardinal Financial