by Dan Wolf
on Friday, October 11th, 2013 at 8:19am.
Each day the news about the government shutdown hits closer to home for many people, but what about home buyers that depend on the government for their mortgage? What can they expect when applying for a USDA home loan? If you're shopping for your next home, you may be held up by the government shutdown.
Home buyers can still be pre-approved for the USDA mortgage. Banks are able to get everything together by having you fill out applications and bring in your financial documents. You will then be given a ballpark figure of the amount you can afford. However, that's all the bank can do. Until the government is up and running, your loan will be at a standstill.
Depending on how long the government remains closed, you could lose the ability to purchase a home your offer was accepted on. Those that are close to running out of time to get their finances together may want to retract their bid. Those that are making their offers now, may want to request more time than usual to obtain funding.
The government shutdown is a big blow to the housing market. Those that have the option to use other sources of funding should consider this avenue if they want to close quickly. If you're unable to obtain other funding, you may want to hold off on the house hunt until the government is open for business.
Want to know more about the mortgage options or the housing currently available in Anchorage? Contact us.