Acquiring a Heloc on a property, just prior to sale.

[Kenneth Fite]

My family and I are relocating out of state and are near the end of the process of getting a Heloc on our home specifically for cashflow to cover moving, earnest money, and setup expenses. Our realtors wanted to go ahead and do a trial listing on the house, and we ended up getting a few good offers. The timing of accepting an offer and of the finalization of the Heloc are going to be nearly overlapping.

My question is:   Is there a danger to the sale contract in going ahead with the Heloc just prior to or just after accepting an offer, OR to the new mortgage we would be seeking in the following few months?  Again, the sole purpose is to have cashflow to meet certain deadlines that will likely fall before closing on our current home. 

[Wayne Brooks]

@Kenneth Fite It will not affect the sale of your home in any way. It will simply be paid off from the sales proceeds just like your other mtg.

After the sale it will not affect any new loan application since it will no longer exist.  You may have some “charge back” fees when laying it off if the lender laid any type of fees up front for you or they have a minimum amount of time it must be open.