In today's market there are plenty of people that have their homes currently listed on the MLS. They can be first time homebuyers looking to move up, people looking to relocate and investors looking to move their inventory. At some point they may decide to take their home off MLS to refinance to a lower rate, pull out cash or due debt consolidation.
There are a few things that these clients and Realtors can do to help the situation if they ultimately decide to take the property off MLS and refinance.
- First it is important they consult with a mortgage broker or loan officer prior to coming off MLS so that their expectations are realistic and they understand the ramifications of what they are looking to accomplish with the refinance.
- They must be made aware that the lenders that are available for what we call one day of MLS are few and far between.
- The shorter the time they have been off MLS the more restrictions there will be, they may not allow cash out or they may require a minimum prepay period.
- The client should have a long term goal. The longer they can stay off MLS the more favorable the terms. The lenders generally tier at 90 days, 6 months and the most favorable 12 months between the time they have had the property listed.
- They must continue paying their mortgage.
The client above all should have realistic expectations. It may not be in their best interests to delist the property, there may be other solutions. But, they may also need to take the property off MLS and bide their time until it is right for the refinance.
Above all else it is important that the Realtor and the Mortgage Broker work together to accomplish the right outcome for the client. Lenders do not look favorably on properties that have been recently listed MLS and now the clients want to refinance. It is not an easy process for the client to go through. The normal turn times may be extended and exceptions may need to be gotten by the lender for the new loan. It can be a stressful time for everyone involved.
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