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Updated over 4 years ago,
Re-Fi out of Hard Money Loan... is this common practice?
I am rather unsure and felt this was a safe place to bring this question. I am currently about 80% done with a project that I started a few months ago. I have received 2 of my 3 draws from my hard money lender. I will not get the 3rd and final until completed. Money is tight and although I am nearing the end of the project I have come up against some unforeseen issues that will require me to throw money at them to fix before being finished to the point that I can place a renter in the property. Now, here is the caveat. I knew the financials were becoming thin so I figured why not just start the re-fi now... so I did (start the process). But, now that I have done so... I just received a call from the bank handling the re-fi and they need to complete the PayOff documentation but if I give them the information to my Hard Money Lender (Mortgage Payment) and Loan information when they contact them is there going to be an issue? Or, do I need to wait until receiving my final draw?