Government Shutdown and Real Estate: What Buyers & Sellers in Central PA Need to Know
Watch: Michael explains how a shutdown can affect financing, verifications, and your timeline.
When Washington pauses, real estate doesn’t. A U.S. government shutdown can ripple through financing and verifications—but with the right prep, most buyers and sellers in Annville, Palmyra, Lebanon, Hershey, and Greater Central PA can still close on time.
Quick Take: What Might Be Delayed
What Usually Continues
- Conventional Loans: Many lenders keep underwriting/closing as normal, especially if verifications are already in file.
- Appraisals & Inspections: Third-party vendors generally operate as usual.
- Title & Settlement: Local title companies and abstractors remain open.
Important: Every shutdown is different. Impacts vary by lender, loan program, and the specific services affected. Always confirm current procedures with your lender and title company.
Buyers: Steps to Protect Your Closing Timeline
- Front-load documents: Get W-2s, pay stubs, and full tax returns to your lender early to reduce reliance on transcripts.
- Ask about alternatives: Some lenders can use written VOEs or investor allowances in place of certain gov verifications.
- Lock strategy: Discuss rate-lock length and extension costs in case processing takes longer.
- Contingencies: Keep financing timelines realistic; build in time for potential verification delays.
Sellers: How to Stay on Track
- Pre-screen buyers: Favor offers with complete DU/LP findings and strong lender letters.
- Timeline buffers: Use practical, not aggressive, financing and appraisal deadlines.
- Backup plans: If flood insurance is required, confirm issuance/assumption options early.
FAQ
Will my closing be canceled? Not necessarily. Most transactions still close with smart planning and lender coordination.
Are FHA/VA/USDA impossible? No—many continue, but turn times can change. Get your file complete early and stay close to your lender’s checklist.
Should I delay listing or writing? Usually no. Use a plan that anticipates verification timing and sets expectations up front.
Our Local Plan (So You Can Keep Moving)
- Coordinate early with your lender and title team on any gov-touch processes in your file.
- Right-size deadlines in the AOS to reflect current turn times.
- Weekly update cadence from contract to close—no surprises.
Talk Through Your Scenario Selling in Central PA
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This post is for general education and is not legal, tax, or lending advice. Verify current policies with your lender, title company, and insurer.