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VA Loans

Are VA Loans Affected by Government Shutdowns?

Are VA Loans Affected by Government Shutdowns?

Government shutdowns happen when we least expect them. When they do, they have a way of disrupting industries and pausing resources that people need every day.

For homebuyers applying for a Pueblo VA home loan, the thought of getting caught in the middle of a shutdown can be daunting. With uncertain economic conditions looming, the threat of a shutdown could be in the near future. So, what can you expect from your loan application if a shutdown is declared?

VA Loan Applications Can Still Continue

Just because the federal government puts a pause on its services and closes certain offices doesn’t mean you can’t still apply for a Pueblo VA home loan. In fact, the sooner you get your application started, the better off you’ll be. It may take more time for your lender to reach a decision, but there’s no reason to delay your application.

The Banks Are Still Open

Though the VA secures the loan, the loan itself is issued by a private lender. They’re not impacted by shutdowns and can still render decisions on loans, process applications, and help people navigate the homebuying process even if the government isn’t open. As long as the banks are open, you’re able to apply. You’ll just need to be patient.

The VA Won’t Be Fully Staffed

The Department of Veterans Affairs is considered an essential organization. This means they’re still open during government shutdowns, but they won’t be open with full staff levels. When fewer people are working, there will be delays in the processing of your requests. They’ll still get processed eventually.

Keep in mind that the delays are proportionate to the duration of the shutdown. If the shutdown is short, you likely won’t see any significant delays. However, if the government extends the shutdown for any reason, a backlog will start to build and it will take more time.

The Best Thing to Do Is Apply

If you’re considering buying a home with a Pueblo VA home loan during a shutdown, don’t let the shutdown stop you. Apply for your loan and meet with your mortgage broker as soon as you can. The sooner you start the application process, the sooner it can be approved so you can get into the house of your dreams. If you’re worried about timing or just want to speak with someone who understands the VA loan process in detail, contact us immediately.