The Gov’t Shutdown Could Mean Delays For Home Loans
GRAND RAPIDS, Mich. – The consequences of the government shutdown continue to pop-up in West Michigan now it seems the housing market could be set for some delays.
Lately in West Michigan a dream home doesn’t stay on the market for too long. Once a buyer’s offer is accepted the process of securing a loan begins. Lenders like Tom Jacobs of VanDyk Mortgage in Grand Rapids says as long as the government remains shutdown, the loan process hits a wall early.
“One of the things lenders do is verify borrowers income by getting tax documents from the IRS and right now the IRS is shut down so we don’t have the ability to verify that income,” he said.
Jacobs said he is not discouraging people from making offers on a home, but said buyers should prepare for a wait to secure financing. He said depending on what type of loan you are looking for the wait time could be even longer.
“The USDA loans are completely shutdown,” he said. “They are not underwriting loans, not processing deals at all. The wheels have stopped.”
Lenders continue to see a strong housing market for the time being but tell FOX 17 the uncertainty in the federal government is doing the housing market any favors.