Hot take: my loan officer was completely wrong about waiting 6 months after closing

My loan officer at First Federal Savings told me I had to wait exactly 6 months after my purchase refi before I could do a cash out refi on my house in Phoenix. I followed his advice to the letter but when I applied last week the new lender said that rule was only for certain loan types, not my conventional loan. Anyone else get told a bogus waiting period that cost them time or money?

2 comments

2 Comments

tylermurray1mo ago

Oh man I feel your pain. My loan guy at Wells Fargo told me the same thing, said I absolutely had to wait a full year after my refi before I could do anything. I waited like a good boy, missed the chance to pull cash out when rates were way lower, and then found out later that was only for FHA loans which I didn't even have. Cost me a solid 10 grand in higher interest over the life of the new loan. It's wild how these guys just make up rules without checking first. I switched lenders after that and the new one was like, yeah you could have done this months ago.

wendy_park761mo ago

Has anyone considered that loan officers might actually be trained this way on purpose to discourage early refinances and protect their commission structures? @tylermurray, your old Wells Fargo guy probably knew the rules but got paid more if you waited, and the same might be true for your guy. It's crazy how common this bait-and-switch seems to be across different lenders.