Due to the government shutdown and some flight to quality in the markets, interest rates have gone down some and mortgage applications have started rising. The “4506 transcript” requirement from many lenders on closing loans will remain an issue for many. However our company has been authorized to close your conventional loan up to 625,500 without the IRS transcript, subject to successful quality assurance control. (caution: if you are self-employed, there could be additional requirements) We still will require the 4506-T request to be signed and in the file to possibly be used at a later date, but IRS transcripts will not be hold up your refinance or purchase transaction. You need to be CERTAIN, if applying for any mortgage at this current time, that the lender you are using will close your loan without the 4506-T transcripts from the IRS.
Also, since there are some lenders not willing to close your loan without the IRS transcripts, that means there will be some scrambling on houses currently in escrow and additionally some sellers getting nervous about all this. That could mean a possible softening of positions by some sellers on their prices, worried that this could slow things down some….So with rates down and these added anxieties, now might be a strategic time to make those offers.