(Newswire.net — October 16, 2013) Temecula, CA — The controversial shutdown has had a lot of unexpected repercussions, including the potential to stall the completion of home loans for citizens seeking mortgages for their new home, as markets begin to slowly pick up.
The shutdown may not have any effect on the number of people seeking mortgages or to finance, but it could have a large impact on those that do apply for a home loan.
Nick Dexter, Branch Production Manager of W.J. Bradley Temecula Mortgage Capital, LLC in Temecula, California explains; “Many people don’t realize the repercussions of a potentially long-haul shutdown, but it could certainly delay the closure of home loans. This will mainly be caused by delays from the IRS. Anyone who already has a home loan request going through the system shouldn’t have any problems, as information from the IRS suggests that they have already been processed. However, new requests are not going to be processed until the end of the shutdown. Therefore, the longer the shutdown, the more loans will buildup.”
As a worst case scenario, a lengthy shutdown could force interest rates back up, further denting a growing lack of consumer confidence.
– Estimates suggest that 25% of mortgage lending customers could be affected by delays, if the shutdown lasts for longer than one month.
– Larger lenders may be able to “leap frog” delays, as they have FHA authorization to close loans
– Smaller lenders may struggle as they do not have FHA authorization
– Rates are ordinarily locked for a set period, as the loan is processed. However, delays may stretch further than the typical rate-lock period of 60 days.
W.J. Bradley empower customer confidence for mortgage lending, by treating each client as an individual with unique financial needs for both the short and long term. An experienced Advisor will work with the customer all the way through the process, ensuring that they understand exactly what is going on, empowering them to make the right decisions no matter what their financial situation.
As a result of current circumstances, W.J. Bradley advises anyone considering a home loan should get in touch to discuss the “ripple-effect” of the shutdown, and to determine what rate-lock extensions are available.