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What does a government shutdown mean for my loan?

While everyone is worried about how things will be affected, buyers who are in the process NOW but not yet closed will need to be concerned as well…here is an email received from a lender today:

As you may or may not know, when processing a mortgage application we verify an applicant’s social security number through the social security administration and go to the IRS for the applicants tax transcripts.   This is mandatory for all loans no matter who the lender is.

This process usually takes less than 48 hours, but if there is a shutdown we will not be able to obtain this information.   Once the shutdown is over these division may have to play catch up.

And this just in from OAR / NAR reports:

Government Shutdown & Housing

In light of the Congressional empasse currently taking place in Washington, HUD officials share what to expect concerning the status of FHA loans and the federal government shutdownlooming at midnight eastern time. Source: NAR