Many buyers and refinancers don’t realize just how involved some parts of the government are in the mortgage loan process. The shutdown definitely makes things difficult.
Orange City, FL (PRWEB) October 17, 2013
With the government shutdown still underway, it’s more than just federal employees who are feeling the pinch; it’s would-be homeowners.
“Many buyers and refinancers don’t realize just how involved some parts of the government are in the mortgage loan process. The shutdown definitely makes things difficult,” says Vance Scott, owner of Approved Mortgage, an Orange City, FL, based mortgage company.
Those looking to buy homes must go through a verification process which includes getting tax returns from the IRS and social security number verification from the Social Security Administration. But with both agencies closed due to the shutdown, it’s impossible for lenders to verify needed information, leaving potential homeowners to wait.
The popular USDA rural homebuyer program is also unavailable until further notice and FHA-backed loan approval is dramatically slowed due to the agency’s skeleton staff.
For homebuyers, these delays can mean more than just cooling their heels, it can mean the loss of their dream home if they can’t get their mortgage approved by the seller’s deadline.
Many homebuyers were lucky enough to have gotten their paperwork processed before October 1, 2013 and now have approved home loan applications, but a rising number of applicants who weren’t so lucky have loans frozen in limbo.
While the shutdown certainly is disrupting the plans of many, it’s still possible for savvy homebuyers to make the best of the situation. Approved Mortgage recommends that potential homebuyers gather all of their paperwork together and still apply for the loans they want as waiting lists after the shutdown are likely to be long. A meeting with their experienced mortgage professionals can help homebuyers and refinancers understand exactly what their current options are and create a game plan for when the government gets back on track. They specialize in mortgage programs from first-time buyers and VA loans to reverse mortgages. Their website, designed by First in Results, makes it easy to schedule an appointment for a consultation.
With interest rates only increasing slightly and the rise in home prices slowing, buyers who have to wait for financing should still be able to find the home they’re looking for in the price range they want.
For more information, contact Approved Mortgage at 386-668-8000.