How will a government shutdown affect the home buying process?
Most people don’t think a government shutdown will affect them at all. And for a lot of people, they are right, it won’t have any impact on their daily lives. But for people who are trying to buy or sell a home the shutdown can drastically change the way you approach the process.
Most loans are backed by government funded agencies such as USDA, FHA, Fannie Mae, and Freddie Mac. With these agencies shutdown down, the process can be severely slowed down. Most of these agencies will be running on a skeleton crew. With files piling up they will be only be able to process a fraction of the loans that they usually process.
As the seller this could change which offers you accept. Sellers will be more hesitant to accept FHA offers, because they know the process will most likely take a lot longer to complete. Getting approved for a conventional loan could be one way to avoid some of the issues that we are sure to see.