When should I start the refinance process?

[Bryenne Korte]

Hello! My partner and I are actively looking for our first deal in West Michigan. We plan on refinancing my primary residence to finance the deal...the home is worth about 15-20% more than I purchased it for in 2013 and additionally, I have quite a bit of equity. We are hoping to get enough out of the refi to pay cash for a deal. With that said...I'm wondering when I should start the refinancing process? Is it best to do it in advance of finding a deal? Any insight or advice on this process would be much appreciated!!

[Lynne Jacob]

Oh yes!!! Absolutely, @Bryenne Korte .  Do it NOW.  I don't know about the U.S. Banks but in Canada they're slower than molasses in the middle of January!!  Just get a Home Equity Line of Credit.  You don't have to pay any interest on it until you draw money and you only pay interest on what you draw.  So GET AS MUCH AS YOU CAN. :-)  It's a cheap way to go because

1.  You only pay on what you owe ... and only when you owe it;

2.  You can make extra payments any day of the week (I'm imagining it's the same way as in Canada);

3. You NEVER have to ask permission from a banker AGAIN for as long as you have credit on your HELOC. YOU are in control; you're in the driver's seat.

So ... to answer your question:  When?  Now.  Best done in advance? Absolutely!

I not only helped home-owners et HELOCs for 1/4-century from my career in the legal field, but

I had a HELOC on my house in the '80s and '90s and it was heaven to NEVER again have to ask permission from a bank ... to buy a snowmobile; to buy a boat; to pave our laneway; to put in a new septic system (though that one they would have acted on right away to protect their collateral);

I got a HELOC on another home in 2009 to make a sizeable investment in my business ... and it took forever (exaggeration; it look way too long with aggravation);

Many of my clients are held back in their businesses because Banks keep taking months -- literally months -- to make lending decisions one way or the other.

Yes, it's a topic about which I'm passionate! :-)  Hope this has been helpful.