Recently Listed Homes Cause Challenges for Refinancing

UPDATE 5/2/17: Fannie Mae has changed guidelines for refinances of recently listed homes.

So you tried selling your home in this market and were not able to find a buyer.  Now, you want to take advantage of our current low mortgage rates and refinance to reduce your payments or perhaps take some equity out to improve your home now that you’re not moving anywhere.   Not so fast!  Most lenders will not refinance a recently listed property.  

Lenders have various time requirements before they will proceed with a refinance when a home has been recently listed.  They want to make sure it is not likely that you’re going to be selling your home since you’ve shown desire to do so.   Why?  Simple…it’s money, honey.   Lenders are banking on receiving a certain amount of mortgage payments and you’ve shown your cards; making the loan potentially less financially attractive to the bank.   If you can present a solid case to the lender that you’re staying in the home, they may allow a rate/term refinance.   It’s completely the lender’s call whether or not they buy your story.  Otherwise, the wait to refinance your recently listed home may be anywhere from a couple months to one year.

If your home has been listed within the past 12 months, let your Mortgage Professional know upfront before your appraisal is ordered (always be upfront with your lender)…it may save you some time, money and headache.

If you’re considering buying or refinancing a home located anywhere in Washington state, where I’m licensed, I’m happy to help! Click here for a mortgage rate quote.