How Is The Government Shutdown Impacting Real Estate Transactions?
For most people, the government shutdown has not had an immediate impact on their daily lives. Right now, it's hard to determine the short-term and long-term effects this will have on the economy and real estate market. Obviously, the answer will largely depend on how long the shutdown lasts. However, for those engaged in buying or selling a house right now, you may be feeling the effects of the government shutdown sooner than most.
For instance, the U.S. Department of Agriculture is not issuing an new loan commitments and/or guaranties for Rural Housing/USDA loans right now. This will have a major impact on real estate transactions where the buyer is getting a RH loan. VA and FHA loans will continue to be processed, but delays are expected. As a result, real estate transactions may not close on time.
For those applying for a mortgage this week, the IRS has suspended processing of all forms, including tax return transcripts. These forms are required for many types of mortgages. Also, the Social Security Administration is closed during the government shutdown, so their verification system will be unavailable resulting in delayed mortgage approvals.
For a more details about how the government shut down could impact real estate transactions, CLICK HERE!
If you are thinking about selling your home, or would like a free no-obligation home evaluation, feel free contact The Holli McCray Group at (865) 291-0355 or email us at listings@hollimccray.com to schedule an appointment.
You can find out what your home is worth RIGHT NOW by clicking HERE.
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