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Should I apply for new construction loan while waiting for refinance to close?
2 Comments · Posted by admin in construction loan
My wife and I are refinancing our home. It looks like it will be done in a few weeks. We hope to use money we get out of the refinance to put down on a construction loan. Do you think we should wait to do something on the construction loan until after the refinance closes? What about getting pre approved for the construction loan?
What if I just get pre-approved so that I can make an offer on a piece of land?
It would be wise to not start the purchase process until the refinance goes through. The underwriter 9 out of 10 will ask for a letter of explanation for mortgage inquires in the past 90 days on credit. This insures that the debt to income ratios are accurate. Regarding making offer, I don’t see a problem with making a offer, but do not start the purchase process until the refinance has closed.
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Sharon T · March 11, 2010 at 8:34 pm
You must disclose the construction loan to the company refinancing your home, which may well stop it in its tracks.
This scenario could be viewed as fraudulent so tread very carefully. A wiser course is to let the refi season well before proceeding.
References :
maocom1 · March 11, 2010 at 9:15 pm
It would be wise to not start the purchase process until the refinance goes through. The underwriter 9 out of 10 will ask for a letter of explanation for mortgage inquires in the past 90 days on credit. This insures that the debt to income ratios are accurate. Regarding making offer, I don’t see a problem with making a offer, but do not start the purchase process until the refinance has closed.
References :
http://www.fhastreamline911.com
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