Re: Refi time period. - Posted by Kent C
Posted by Kent C on February 20, 2002 at 04:41:38:
My answer is a resounding…2 minutes!
I do just what you are talking about now. It works ESPECIALLY well when you pay cash. Some lenders are sensitive on the topic of “instant” equity. Some are not. The banks I deal with are not. ALL of them are not, if you ADD value, such as in a remodel. So if you give it enough time to have “done” something to improve the house (ie 30 days) and cite these things, it can make it easier to valuate with the banker. But mine dont care what I bought it for as long as the appraisal gives me a fair valuation.
I might pay cash today but I get my cash back out as quick as possible. I pay for an appraisal myself too, before going to a banker. This gets you a better number when they work for you…shouldn’t …but does. Abstracting is good for 6 months, with only a cheap gap check needed during refi. Bankers almost swoon to see a guy with a house free and debt clear. It is not the same to ask for a loan on a house you do not own and to ask for a refi on a house you own free and clear.
I do like the idea of giving the title enough time to have changed over to your name (been processed) in case of a call to the assessors office when they check to see the status on property taxes.
So to recap. I “feel” like 30 days is a good number. Gives them time to make assumptions, like …you had time to improve its value, even if you didn’t. But if I had a signed deed and a ready abstract and a good appraisal… 2 minutes is enough. Remember, its not a loan for a new house…its a REFI…BIIIG difference…big diference. One is from a position of weakness (may I pleeeez buy this?), one a position of confidence and asset (I own this regardless of what you have to say to my request).