A common mortgage question involves how refinancing an existing mortgage while seeking out a new mortgage for a different property works. According to a loan officer, the only ironclad rule about refinancing and purchasing is that you cannot refinance a mortgage on a primary residence while purchasing a new primary residence. If you are purchasing a second home, however, refinancing your primary residence to a lower payment could actually help you qualify for your second loan.
- According to Andrew Weinberg, an expert mortgage broker, there is nothing wrong with refinancing a second home while one is still buying a property with mortgage.
- What lenders look for when one applies for purchasing a new home through mortgage while refinancing is whether the individual qualifies for the loan.
- The benefits of doing refinancing and applying for a mortgage at the same time are that you have to deal with one officer and provide documents only once.
“Whatever the reason, if you’re considering applying for another loan while refinancing your current home, the process can be a bit complicated.”