Government Shutdown Impact on the RI Housing Market

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Government Shutdown Impact on the RI Housing Market

 

The government shutdown for now has not impacted the Rhode Island housing market with mortgage underwriting…as of yet.  We are

Government Shutdown impacts RI housing market in RI real estate

No money happening now!

too early into this shutdown to experience any hiccups in the mortgage process with FHA (Federal Housing Administration) which the majority of mortgages are underwritten by.  But if the government shutdown goes on for weeks my home buyers will feel the slowdown in getting to the home closing table in RI real estate.

See all the Freddie Mac and Fannie Mae loans that home buyers apply for go through the Housing and Urban Development arm of our government.  Since this division only has 2% of their staff reporting for work you can imagine that processing of mortgage documents and approvals will slow down.  The largest impact is from the Internal Revenue Service where the form 4506 will not get processed to verify the home buyers verification of income from their past tax returns.  This is a real headache for borrowers as well as home sellers in RI.

Home sellers looking to move on with their lives due to another house bought or relocating out of state may be in for some unwelcome surprises.  Will the borrower on their RI home get to closing in a timely manner or at all?  As a RI real estate agent this is foremost on my mind now for my home sellers and buyers.  All of my home buyers have all the necessary mortgage documents for their lenders to close.  Why and How?  Both the lender and myself made sure we anticipated this shutdown lasting weeks and obtained the documents early.  I don’t know of any other agent who was pro-active.  It is part of this RI real estate business to be ahead of the curve…you snooze, you lose here!

Government Shutdown Impact on the RI Housing Market

No buyer wants to miss this RI view

The biggest concern is what the sustained government shutdown will do to the rebounding RI real estate market.  Any extended shutdown will impact the U.S. economy and the Rhode Island housing market negatively, too.  Call, write, tweet, and email your Congressional delegation and tell them to start acting like grown-ups and work out a solution now.  Mr. President and Congress can you hear me now…this government shutdown is impacting our lives and our RI housing market.

Government Shutdown Impact on the RI Housing Market

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Ginny Lacey Gorman is your go to Rhode Island waterfront agent for RI coastal real estate and beyond…knowing the geographic area, schools, happenings and important tidbits of local information.  Email me at Ginny @RiHouseHunt.com to make an appointment to find the home of your dreams too!
 
Waterfront, oceanfront, luxury and coastal Rhode Island real estate are my specialty but all of RI is my backyard.  When you are in need of a real estate professional and specialist for your buying, selling or relocating needs and an internet savvy marketer who sells RI houses in this real estate market call Ginny at 401.529.7849.