Gov’t Shutdown… How Can It Hamper Home Loans?
Here we are in day seven of the government shutdown. Most real estate professionals are of the opinion a few days of the gov’t shutdown would have a very minimal effect on the processing of home loans. But the longer the shutdown goes on, the more obvious it will become to borrower’s the impact the shutdown will have on the housing market.
In today’s market the most popular loans are the FHA loans. However those lenders processing FHA backed loans require tax transcripts, Social Security number verifications and borrower’s identities verified and other key information. The lenders obtain this information from the government agencies.
Borrowers should discuss with their lenders what steps can be taken in the event of a continued shutdown. Can the borrower, get an extension on the loan commitment, longer rate locks and what are the extension policies.
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