Can you refinance while your home is on the market for sale?
Our home has been on the market for a while now. We need to refinance to lower monthly payment. Can we refinance a home thats for sale?
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Sure, you can, but it will cost you money to do the refi. If you sell soon, it will seem like a waste, but if you’re stuck with the home for a long time, maybe it was for the best.
I refinanced a year ago, and I’m selling now. Normally, even that is considered too close, but there’s no real restriction on it…it just doesn’t seem like it would be to your benefit if you can survive without the refi.
some lenders like the home to Not be on the market.
the reason is , the underwriter will look at it, in a
negative light. if the home will be Sold, why put
a new loan on it today. Thus, check with your loan officer for further instruction.
The answer is yes you can BUT the reality is that it is hard to find a lender that will refinance your loan knowing that at any minute your home could be sold and they will waiste their time and money. Most lenders will ask you to take the home off the market before you can refinance.
Good luck!
Normally it has to be off the market for a minimum of 6 months (Fannie Mae guidelines.)
Most lenders will require you to take the home off the market. You may also be required to sign an affidavit stating your plans for selling have changed.
The reason lenders are reluctant to refinance you if you are planning to sell is that they will not be able to recapture any of their costs associated with doing the refinance. In a nutshell it costs them money if you turn around and sell it.