Government Shutdown & Mortgages: What Buyers Should Know

📉 The Domino Effect Behind the Scenes

A federal government shutdown isn’t just a D.C. drama; it’s a real-world slowdown for lenders and borrowers alike. Agencies like the IRS, SSA, and HUD all play supporting roles in getting loans approved. When they close their doors — or even just cut staff — verifications, transcripts, and loan case numbers can be delayed.

Even buyers using conventional loans may find themselves waiting longer than expected. During shutdowns, FEMA’s National Flood Insurance Program often pauses new policies, freezing closings for homes in flood zones. The result? More “hurry up and wait” moments for lenders, title teams, and anxious borrowers.

🔗 CBS News • 🔗 Politico • 🔗 NAR

🌵 Arizona’s Perspective

Here in Arizona, speed matters. Phoenix and Gilbert buyers move fast, and any holdup can derail an entire deal. Lenders are learning to build “patience padding” into timelines — just in case a transcript or case number takes longer to surface.

For borrowers, the best move is communication. Staying in close contact with your lender and real-estate agent helps everyone anticipate delays before they snowball. A little transparency now can save a lot of stress later.

🐼 The Mama Bear Takeaway

A government shutdown doesn’t break the market, but it can bend your timeline. The best defense is preparation — build in buffer days, stay alert for policy updates, and don’t panic when things move a bit slower. Mama Bear says: stay calm, stay informed, and let your lender (me) lead the way.