Government shutdown slows home buying process - Tucson News Now

Government shutdown slows home buying process

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TUCSON, AZ (Tucson News Now) -

The process of buying or selling a home is hitting a wall during the home loan process for some because lenders are not able to verify information with the Internal Revenue Service and other federal agencies.

Help-U-Sell Real Estate Broker John Powell says home loan lenders that his company works with cannot confirm tax transcripts and social security numbers when trying to approve a home loan. As of now, many of the transactions his office has been working on were approved before the government shutdown last week.

However, those expected to close in the coming weeks might have to wait until the government is back up and running. If the government shutdown goes on for much longer, Powell fears it can be damaging to the Southern Arizona housing market saying, "the biggest issue if this drags on is going to be consumer confidence, making that move to buy a house if you're not sure about what the future is going to hold. There's a lot of government agencies in Tucson mostly border patrol and right now they're not receiving a pay check so that put a lot of uncertainty into the market."

Additionally, real estate agents are also concerned because if they are unable to close a deal, they do not get paid their commission.

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