Purchasing with HELOC, how to send to escrow?
I'm about to purchase my first investment property fully funded with a HELOC. When I purchased my primary residence I had wired the required funds to an escrow account, but since this is my first time using a HELOC i'm not really sure how I can send the money to escrow. Do I mail them a check? or do I get the money to my banking account first and then wire that? Does anyone have experience in this area?
Billy, lender here. Good question. If you're not retaining any additional liens to obtain the property then all you'll need to do is cash the money into your bank account first then wire the funds to escrow. This would be considered a cash purchase essentially so your close time will be 2 weeks or less since you're just waiting for title to be completed unless you plan on pursuing an appraisal report as well.
Hi Billy,
Chris is correct.
For reassurance, call the lender who you closed your HELOC with and confirm with them on how to distribute the funds from your LOC to title.
