Thursday, October 10, 2013
Delays for Home Buyers
With the federal government on temporary shutdown, some home buyers will experience delays in the processing of their loan packages. One doesn’t often think about how intricately the loan process is tied to government information, but lenders require verification of borrower’s Social Security Numbers as well as verification from the IRS of tax returns to be certain they have not been tampered with. The current regulations require at least one of the tax returns being submitted as supporting documentation be verified for accuracy. While this usually only takes 24-48 hours, the validation will have to wait for the government to begin working again and then any backlogs to be worked through.
Depending upon the length of the shutdown, the effect on the mortgage industry could be significant. If you are currently purchasing a home, contact your escrow company to see the status of your loan and how this may affect the process.