Buying Investment Properties while refinancing primary residence?

Question

I just refinanced my primary residence and it took over 6 months to close on the refinance. I was told by the lender not to make any major purchases, or take on any additional debt, until the refinance closed.  I just closed on the refinance a couple weeks ago and now I'm in the process of opening a HELOC and I'm being told it will take another 2 months.  My search for an investment property has been on hold the entire time.  How do others deal with this situation? Am I correct in holding off purchasing an investment property during a refinace?

Forrest Faulconer · Answer

That is baffling, they must have rate locked you deeper into the process because those are usually only good for 30-60 days. Always call around for lenders, we refinanced our house recently at 2.99% (cash-out) and it took 5-6 weeks.

Stephanie P. · Answer

Yes.  You are correct.  Do not incur any additional debt or make any major purchases. You may blow your debt ratio out of the water.  Shouldn't have taken 6 months.  Nobody is that busy.

Once you get the HELOC, you may want to look into a no income verification loan.  As long as the numbers work, you can buy all the cars you want.

Stephanie

Ryan Pearson · Answer

@Forrest Faulconer I’m not exactly sure.  I think a combination of too many people refinancing at once and an overwhelmed lender.

Martin Carstens · Answer

Ryan, all lenders are different.  If you do not ask the question, many do not see it as, they need to educate you.  Six months is a long time, too long. I have had to explain a rental car charge. You are asking them for funding, so they want to know all about you, and then some!  Some lenders are very good at solving problems, some not.  Shop around, and have a list of questions ready.  Like wise, when they have a financial question for you. Be ready with documentation and an answer. Net working is everything.  Expand your net work, and find the right lender for you & your needs. Best of luck in the New Year!

Forrest Faulconer · Answer

Hi @Ryan Pearson, why did your refinance take over 6 months to close?

Buying Investment Properties while refinancing primary residence?

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