RAPID CITY, S.D. (KOTA TV) - It's the 18th day of the partial government shutdown. With some federal offices closed, some home buyers cannot get the loan needed to buy their new home.
Closings with the IRS and U-S Rural Development office are impacting how home loans are getting approved. A mortgage lender needs the IRS to verify a buyer's tax returns to approve a home loan. Though the IRS is now partially open and can review documents, rural development is still closed. Rural development loans need to be reviewed by the federal department before a buyer can be officially approved which is not an easy thing to tell home buyers.
"That's the hard thing. Buying a house is an emotional process. So people are excited. Their whole world revolves around this mortgage process and then to tell them that there is a delay that's out of everyone's control, I mean it's a hard conversation," says Affiliated Mortgage Branch Manager Troy Trombetta.
Trombetta says about 10 to 20 percent of their clientele uses Rural Development loans. Now those clients have to wait until the shutdown is over to continue the loan process and complete the sale.
Now with the delays in loans does that mean buyers are gonna miss out purchasing their dream home, well one broker says it's not likely.
"As long as the two agents are communicating, make sure, hey we're trying to work through this and that they know that's what the issue is I think the buyer and the seller will overcome most of it. So I don't think you are really going to miss out unless the seller is in a hard position where they go, I can't do this now I got to move on and do it with somebody else," says Assist 2 Sell Owner and Broker Steve Anderson.
Anderson says if the government shutdown continues the delay is not only affecting buyers but also sellers.
The mortgage lender says it normally takes a day or two to approve a Rural Development loan. So he hopes to see that office partially open to keep the loan processes rolling.