Friday, October 4, 2013
Shutdown will stall home loans for thousands
1. Category of problem: Politics
2. Level of problem: National
3. This article concerns: All individuals that are applying for any loans, especially potential homebuyers.
4. Importance/effect on families/individuals: This article will affect families and individuals wanting to buy a house or obtain a loan for other reasons. Since the shutdown will affect the IRS, there will be no paperwork; therefore banks will not be able to determine a person’s income and other important information, making it difficult for banks to determine what mortgage individuals qualify for.
My input: In this article, the government shutdown’s effect on mortgages is discussed. Many homebuyers will be expecting some trouble when applying for mortgages or other loans. Many banks do not want to approve mortgages because they do not have the necessary documentation from the IRS; therefore they are struggling whether they should approve loans and then ask for further documentation once they have been revised. But for right now many requests have been frozen because banks do not know what process they should follow. In my opinion, mortgages should continue to be approved with further documentation because if banks slow the process of obtaining loans, then it will have a greater effect on our economy after the government shutdown.