When Can I Refinance My New Home?

How Soon Can I Refinance My Home After Purchasing It?
It will depend on your lender and what their specific policy is, however, most lenders don’t allow you to refinance before 12 months. Some allow you as early as 6 months, but this is uncommon. You will have to call your loan officer, or lender, or read through the terms of your mortgage.

Why Do They Make You Wait?

Often, banks will make you wait 12 months to refinance, to prevent property investors from purchasing homes that need to be repaired, and then fixing them to have them reappraised, where the equity will then pay for the repairs, and then they are instantly able to make money on the home.

How Can I Increase My Chances Of Being Able To Refinance?

If you are able to show that you are the resident that is currently living in the home, and this is not a rental or brokerage property, this may increase your chances of being able to refinance. Also, if you are showing that because of a recent event, you are struggling to make your payments, this could also increase your chances.

How Do I Apply For A Refinance?

To apply, you will go through a similar process that you did, when you applied for your original loan. Your home will have to be appraised, you will need all of your financial information, and you will also have to but some money down again.

You should wait at least 12 months before attempting to refinance your home, in able to get the best results. Talk with your lender if something has happened and you are not able to work that long, and they may be willing to work with you.

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