Refinancing when your home has recenlty been listed

Has your home recently been listed for sale? If so, did you know that by having your home listed for sale your ability to refinance your mortgage is severely limited?

95% of banks will not lend on homes that have been recently listed for sale because they are concerned that the home might go back up for sale as soon as the loan is funded or that the borrowers are in dire financial straights. Lenders make their money by putting a mortgage in place and collecting interest over long periods of time. Therefore, anything that threatens the length the mortgage is typically a roadblock for loan approval.

That said, because we have the ability broker loans we have targeted a couple investors who will allow us to refinance a home that has been recently listed so as long as the home is off the market at the time when the formal application is made.

These lenders are limited to owner-occupied homes only and will only allow us to provide a rate/ term refinance (meaning that we cannot pull-cash out). Extenuating circumstances such as a job transfer that fell through may override this restriction.

So, if your plan is to put your home up for sale and there is a chance that you may instead decide to stay in the home and refinance it’s best to have a conversation with us first.