What to Expect Now That the Government Shutdown Is Over

Congress has passed a bill to end the government shutdown, and President Donald Trump has signed it into law. Home purchases that were stalled can move forward, but it will take time for things to get back to normal.

How the Government Shutdown Impacted the Housing Market

The six-week shutdown caused widespread delays and backlogs. Some regions and some groups of homebuyers were impacted more than others.

Homebuyers in rural areas frequently take out mortgages through the Department of Agriculture. The USDA did not process loan applications during the shutdown, and buyers who couldn’t qualify for conventional mortgages were unable to close on their new homes.

The Federal Housing Administration, the Department of Veterans Affairs, and conventional lenders continued to process mortgage applications, but buyers who took out loans through those entities weren’t always spared from the shutdown’s effects. In some cases, mortgage applications couldn’t be processed because buyers were unable to get necessary documentation from government agencies or couldn’t obtain flood insurance.

Move ahead with Your Plans, but Be Patient

History has shown that the housing market is resilient. Previous government shutdowns caused short-term drops in home sales, but those numbers rebounded once the government reopened.

If you want to buy a house, you can move forward. In fact, now might be a good time to shop for a new home. The shutdown shook consumer confidence and caused many Americans to rethink their plans to purchase a home. With fewer people interested in buying houses, those who are looking will have more options and more room to negotiate.

Even though the government is open again, you should expect delays. The shutdown created bottlenecks that will have to be cleared before new loan applications and requests for flood insurance can be processed. That will take time. You’ll have to manage expectations and be prepared for possible delays.

Learn about the Homebuying Process

Things will gradually return to normal now that the shutdown is over, but that doesn’t mean that buying a house will be easy. Even under ordinary circumstances, the process is complex and confusing.

All too often, people buy a house without taking the time to learn how things work and figure out what they can truly afford. Buyers who are ill-informed are likely to make mistakes that can easily cost tens of thousands of dollars.

You can avoid that fate by educating yourself before you start searching for a new home. The First-Time Homebuyer Masterclass explains the process in detail. It covers subjects like figuring out if you’re ready to buy a house, choosing a real estate agent, and finding the home that’s right for your family. It also highlights common mistakes and explains how to avoid them.

When you finish the course, you’ll have the information you need to approach the homebuying process with confidence. You’ll receive a certificate of completion that you can share with your lender, if it requires you to take a homebuyer education course. Your lender might even cover the fee. Sign up for the First-Time Homebuyer Masterclass today.