Cash out refi and applying for a new property

[Samantha Klein]

Can you apply for two mortgages at the same name? I am wanting to cash out refi my F&C duplex and also at the same time, apply for a new property, how doable is it? I have the down payment even without the funds from the cash out. 

[Chris Mason]

Hi @Samantha Klein,

It's doable. With multiple escrows open at once, you want to use the same lender for both so you don't have a last minute loan rejection of whichever one would have closed last(1), and plan to close both at the same time -- specifically, whenever the slowest of the two is ready to close. Refinances are less time sensitive than purchases, so start the refinance now, with a lock period long enough to cover however long the refinance might have taken (I don't know your situation or the lending culture in your area in terms of "how long does a refi take?") PLUS the escrow period of whatever you might go into contract to purchase. 

(1) You don't want me, the underwriter, and the underwriting manager, all getting a ping that says "WARNING! New $500k debt obligation appearing on credit report!" three days before (former) close of escrow date... That's not going to be a good day for you! Especially if this one is the purchase, and you've released all contingencies.