Updated about 6 years ago on . Most recent reply
Cashout Refi reason being asked
Hello,
I'm currently working to cashout refi my primary residence as I believe I can free up 80-100k to invest with. In working through the process with the lender I am now being asked for the reasoning for my cashout. Do I need to be worried about explaining exactly what I'm planning to do? Seems like it will be frowned upon to say I'm looking to cashout to leverage up further.
Most Popular Reply
You shouldn’t be worried. It’s pretty standard, but sometimes a lender will have overlays where they ask more and more questions such as, “well if you are using the money for investment, then we would want to know what the terms of the investment will be”...huhm?
You don’t have one so there is no other obligations-yet and you can’t predict what happens in the future. So end of story.