My wife and I are buying a house which has as of yet to be finished. It has appreciated $30,000 since we bought the land and we would like to close with the seller's preferred lender to get all the incentives but would like to refinance right away. Is this possible? And if so how would I do it? Thanks!
2007-03-12 09:22:56 · 4 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Also will there be a waiting period until we can refi or is this something that will be written into the loan?
2007-03-12 09:23:50 · update #1
The quick answer to your question is yes you can refinance after the property is finished depending on what your looking to do and some other items that have been mentioned already.
The first item is pre-payment penalty or not. If you have a pre-pay on your loan then a good portion of that 30K may go right out the window to payoff the penalty or you can elect to pay this amount at closing out of your own funds (bank account) but that rarely happens.
If you have no pre-pay then what are your goals with this refi? Cash out? Pay down other debt? Just a lower payment?
Alot has been going on in the lending world over the past couple of months in respect to serious guideline changes in the market place. Many lenders are no longer offering programs which they had 2 weeks ago. Fico requirements are becomming more difficult to meet meaning that even if you qualify for a specific program there may be pricing adjustments which did not exist a short time ago.
Lastly you do not have much seasoning in the property so most lenders will do a rate and term (no cash out) loan using the purchase price most will want 6-12 months on title to use a new appraised value although there are a good handful which require no seasoning for a cashout loan. Again this comes down to what are you trying to accomplosh.
If you would like to discuss your scenario in detail please feel free to contact me anytime.
Kevin 866-562-6838 x 106
kruorock@firstratelending.com
2007-03-12 12:04:07 · answer #1 · answered by Mudisfun 3 · 1⤊ 0⤋
It can be done. However, the originally lender will more than likely have a pre-payment penalty on the loan. If you don't mind paying that off then sure you can do it. The pre-payment penalty can even be added in your refinance so you dont have to pay out of pocket. If you would like some help with the refinance please email me. I am a loan officer with a Mortgage company that will do this kind of loan. I would post my information on here but like I tell everyone someone used to prank call my office when I did that the last time. Send me an email and I will send you all of my work contact info.
2007-03-12 16:41:35 · answer #2 · answered by Amber J 2 · 1⤊ 0⤋
As long as you are happy with all the upfront costs of the refi and the new lender is OK with the risk, you will not have all that much of an issue.
New homes are almost always overvalued if you ask the builder. Your 30k increase in value may turn out to be fictional.
2007-03-12 16:31:54 · answer #3 · answered by jinoturistica 3 · 0⤊ 0⤋
You can refi anytime that you want as long as the original lender does not have a prepayment penalty in the closing documents. Carefully check for that clause and ask the lender about it too. Get it in writing.
2007-03-12 16:29:52 · answer #4 · answered by Akbar B 6 · 2⤊ 0⤋