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Barrister
Barrister, Lawyer
Category: Real Estate Law
Satisfied Customers: 37097
Experience:  16 years real estate, Realtor. Landlord 26 years
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I am considering buying a house that will not be my

Customer Question

I am considering buying a house that will not be my residence. I am also considering refinancing my residence, no cash out, just a lower interest rate and lower payments. Will refinancing my house before I purchase another house effect the purchase? Is there a time period that I must have between the refinance and new purchase?
Submitted: 9 months ago.
Category: Real Estate Law
Expert:  Barrister replied 9 months ago.

Hello and welcome! My name is ***** ***** I am a licensed attorney who will try my very best to help with your situation or get you to someone who can. There may be a slight delay in my responses as I research statutes or ordinances and type out an answer or reply, but rest assured, I am working on your question.

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Will refinancing my house before I purchase another house effect the purchase?

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No, it will show up on your credit report, but it actually might help it due to the lowered interest rate so it could affect your debt to income ratio as you will be paying less for a payment, presumably.

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Is there a time period that I must have between the refinance and new purchase?

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No, as long as you qualify with the lender regarding your credit and income, there is no mandatory waiting period for a new purchase after a refi. As long as the second loan isn't an owner occupied loan, which typically carries a little lower interest rate, then there wouldn't be any problem with any Affidavit that you might have had to sign affirming that the current home is going to be your primary residence after the refi.

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The lenders don't want to refi a property as an owner occupied property if the person is intending on moving elsewhere right after as that smells of loan fraud and they don't want to get in trouble with auditors if your account was pulled for audit.

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thanks

Barrister

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