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I'm in the market for a new home (already an owner - this would be a new primary residence I buy and move into, then sell my current home after).
Right now I'd have to get a HELOC to cover the down payment if I found a house I love today.
But if I save for just 8 more months or so, I'd be able to fund the down payment exclusively from cash.
If I want to buy a house this year, I have a relatively short window of time left - I have a young kid so I want to be closed on the new home by August 1. Seeing that closing times take up to 45 days, that puts my deadline to have an offer accepted on a new home of Mid June. If I apply for a HELOC today I wouldn't have that closed until early April. So like 2.5 months to find a home I love. In this super competitive market.
Or I could just wait 8 months, I'll have the cash, then have even more time beginning late next winter/very early spring.
So should I go through the motions of getting a HELOC with only a 2.5 month window to find a home this year?
Or hold off this season, save the cash, then have pretty much most of next calendar year, no HELOC required for down payment whatsoever?
Have you gone through the numbers to see if you would even qualify for 3 loans at the same time (existing home loan, HELOC loan, and loan on new house)? That would require a very considerable income. You might not be approved for the loan on the new house if you also have two existing loans on your present house.
What "motions"? It's really not much of a hassle if your credit and LTV is adequate for what your asking for. Unlock credit reports online. Send pdf's online. Do using. They send a notary to your home to sign physical paperwork.
Okay - it does take a little time and research to find the 'best HELOC for your purposes. But still. . .
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