Purchasing property during refinance of another

[Keith A.]

If you are in the middle of a cash-out refinance and you have already provided all documentation and waiting to close should you purchase another property cash prior to the refi closing? This is a conventional refi and the purchase would be all cash and that cash was not used as collateral for the refi. Anyone run into this scenario?

[Paul Cordero]

There would be nothing wrong or unethical about what you are doing, in my opinion, as long as the lender isn't using the money used for the purchase included in your qualified reserves.

You also run the chance of the lender doing a property search prior to closing. You then run the chance of complicating the refinance closing with more paper work, etc.