How Long Does a Cash Out Refinance Take

If you are thinking about using the equity in your home to cover big expenses like home repairs, debt consolidation, or tuition, a cash out refinance can be a smart move. But one of the most common questions borrowers ask is this: How long does a cash out refinance take?

Let’s take a look.

What Is a Cash Out Refinance

A cash out refinance lets you take out a new mortgage that is larger than your current loan. The difference between the two loan amounts is paid to you in cash. Homeowners often use it to tap into the equity they have built over time.

This is different from a rate and term refinance, which only adjusts the interest rate or loan length. With a cash out refinance, you are getting access to cash for immediate financial goals.

How Long Does a Cash Out Refinance Take on Average

In most cases, a cash out refinance takes 30 to 45 daysfrom application to funding. That timeline depends on how quickly you submit documents, how fast your lender works, and the complexity of your financial situation.

Here is a general timeline:

• Application and initial review takes 1 to 5 days
  
• Document submission and verification takes 5 to 10 days
  
• Home appraisaland underwritingtakes 10 to 15 days
  
• Closingand funding takes 3 to 7 days
  

What Can Delay a Cash Out Refinance

Even though lenders aim to close within 30 to 45 days, delays do happen. If you are wondering how long does a cash out refinance take in real-world situations, it often depends on the following:

• Incomplete or missing documents
  
• Backlog in appraisal scheduling
  
• Issues found during underwriting
  
• Title search problems
  
• Waiting on third-party verifications
  

Responding to your lender quickly and keeping financial records organized can help avoid most delays.

How Long Does a Cash Out Refinance Take Compared to a Traditional Refinance

Cash out refinances usually take a little longer than rate and term refinances. This is because the loan amount is higher and the lender may require more verification to approve the cash amount being borrowed. You are also subject to a new home appraisal, which adds a few days to the process.

Still, the process is very similar and can be completed quickly if your finances are stable and your documents are in order.

Tips to Speed Up the Cash Out Refinance Process

If you want to shorten the answer to how long does a cash out refinance take, here are a few ways to stay ahead of delays:

• Gather all your income, asset, and debt documents before applying
  
• Choose a lender known for fast processing
  
• Be available to respond to emails and phone calls quickly
  
• Make sure your home is ready for the appraisal
• Avoid major financial changes during the process

Why Timing Matters When Planning a Cash Out Refinance

Timing your refinance is important if you need funds for a specific project or deadline. Knowing how long does a cash out refinance take helps you plan for payments, purchases, or time-sensitive repairs.

Keep in mind that once you close, most lenders have a three-day waiting periodbefore the funds are released. This is known as the right of rescission and gives you a few days to cancel the refinance if needed.

Is a Cash Out Refinance Right for You

A cash out refinance can be a great tool if you need a lump sum of money and have enough equity in your home. Just be sure the new mortgage fits your budget. Ask your lender about rates, closing costs, and expected turnaround time.

It is also a good idea to compare this option with personal loans or home equity lines of credit to make sure you are choosing the best fit for your goals.

Need Help Starting a Cash Out Refinance?

If you are ready to use your home equity and want a smooth process from start to finish, our team is here to help. We guide you through each step and work hard to make your refinance quick and stress-free. Contact us todayto see if a cash out refinance is right for you.