Financing in Glenview>Question Details

Chald, Home Buyer in Bellevue, WA

Possible to buy with cash and then take out mortage?

Asked by Chald, Bellevue, WA Fri May 13, 2011

I am applying for a mortage but hear that it would take 45-60 days to process the loan. If I need to move quickly, can I still apply for a mortgage, but buy with cash to expedite things and move within my time frame, and then wait for the loan be processed?

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Answers

8
There is a 6 month vesting period before you can refinance a cash purchase.
0 votes Thank Flag Link Fri May 13, 2011
Chald,

As I posted earlier, our processing and underwriting department will have no problems meeting your closing date. Interest rates have hit a 2011 low earlier in the week. If you're interested, you can contact me and we can explore all the loan options available to you.

Sincerely,
Bill Katsoolias
Sr Mortgage Planner
Wintrust Mortgage (NASDAQ SMBL: WTFC)
P:847-456-9923
email: bkatsoolias@wintrustmortgage.com
Web Reference: http://billsloans.com
0 votes Thank Flag Link Fri May 13, 2011
Thanks. I posted the original question. I didn't know about the seasoning period and it sounds a little too complicated. I just need to close between 30-45 days and wanted to get a mortgage through one of my two banks, but both say they need 45-60 days.
0 votes Thank Flag Link Fri May 13, 2011
Chald,

I am not sure why it would take so long to close your mortgage but I do agree with the others that you will need to wait 6 months before being able to refinance and cash-out the property. Good luck in your purchase...
Sincerely,

Steve Smither
Midwest Equity Mortgage
ssmither@ardain.com
847-942-5151
0 votes Thank Flag Link Fri May 13, 2011
There is a seasoning period after closing before you can take cash back out. There are some investors that will allow you to take cash out sooner, but the rates for these programs are very high. If you are ok waiting 6 months before you are able to refinance, then you could do a traditional cash out refi, but the downside would be that you are subject to the rates at that time plus cash out refinances are more expensive. If that was not enough, a purchase money loan may offer some protections regarding recourse that a cash out refinance does not. My strong suggestion would be to finance the home now while rates are low and with a purchase money loan. Don't complicate things needlessly. You should be able to close in the standard 30 day escrow period if not sooner; just make sure you are working with a competent agent and loan officer.
Web Reference: http://WeFixRates.Com
0 votes Thank Flag Link Fri May 13, 2011
Hi Chald,

Yes, but keep in mind, the loan will be considered a "cash out" transaction and most lenders have seasoning requirements, meaning you may have to wait 6 months to be eligible for a mortgage on the property.

Best regards,

Elva Wormley
Cobalt Financial Corporation
0 votes Thank Flag Link Fri May 13, 2011
If you elect to purchase the property with cash, you'll have to wait 6 months before you are able to refinance with Fannie Mae or Freddie Mac to obtain the cash back. Regarding the loan process, the lender should be able to meet the closing date on the contract. If there are having difficulty meeting the date, you should inquire with another lender. Our current underwriting times are under 48 hrs for purchases.

Sincerely,
Bill Katsoolias
Sr Mortgage Planner
Wintrust Mortgage
847-456-9923
email: bkatsoolias@wintrustmortgage.com
Web Reference: http://www.billsloans.com
0 votes Thank Flag Link Fri May 13, 2011
yes - even if you are buying a home with cash it still takes some time to close on a home - you need a title report and a survey - the quickest you can close is about 2-3 weeks.
0 votes Thank Flag Link Fri May 13, 2011
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