How Does the Government Shutdown Affect Home Purchases

You may think the government shutdown in the news will not affect you but if  you are in the process of obtaining a  home loan you may have a delay without realizing it.

Did you  know that  all loans need to have tax transcripts as part of the mortgage loan process?  Tax transcripts are  verified directly from the IRS.

Why are tax transcripts required?

A direct verification of tax numbers from IRS is required to make sure that the tax returns submitted to the underwriter is indeed the tax return that was filed with IRS. Social security numbers are also verified to ensure that the loan that is being provided is to a legit person.

Expect delays due to the shutdown and the budget expiration to both SSA and IRS services  These services will remain offline as long as the government shutdown is in place.

With IRS and SSA offices being closed, lenders wont be able to verify either the tax transcripts or the social security numbers which could result in substantial delays in loan closings.

Be  prepared for extensions and  delays in closings. Remain in constant touch with your loan officer and real estate agent to gauge the impact of government shutdown on your transaction!

National Association of Realtors is keeping Realtors updated during this situation

What a Government Shutdown means for REALTORS

 

 

Leave a reply