Rental Property Investor · Atascadero, CA · Member since 2008 · 9 posts · 1 vote
I have Excellent credit, but lenders all want to run credit checks before quoting interest: how do you compare cash out refinance loans without affecting my credit score?
Also...I have 2 properties that I want to cash out refi: can I do them both at the same time?
Omaha, NE · Member since 2020 · 611 posts · 665 votes
5y
Every hard check run within a 30-day window by a bank while you are shopping for mortgage rates is bundled and will only count as one hard pull against you.
More importantly, if your credit metrics are sound in the most important areas, hard credit pulls will only impact you a couple points each, and for a brief period of time. For example, I have a 787 credit score presently with 13 hard pulls on my history (I've credit-card-hacked for $2500 this year and applied for several mortgages; my credit prior to these hard pulls was 803).
As for the question of cash-out refinancing two properties at once, it is absolutely possible, and have you considered requesting HELOCs instead? They would cost less, give access to roughly as much cash, and be far lower interest than anything amortized.
Best of luck whichever way you choose to move forward!
Lender · Hackensack, NJ · Member since 2016 · 1k+ posts · 372 votes
5y
I typically ask my clients to submit a screenshot of their credit score using any of the free reporting sites and I can get them a quote based on that score. (The numbers on the free reporting sites are almost always slightly higher than when credit is actually pulled but it gives you a range)
Rental Property Investor · Boston, MA · Member since 2019 · 124 posts · 121 votes
5y
I'm upfront with lenders that I'm conscious of my credit and want them to run the numbers with an estimated credit score I provide them. To be conservative I usually do FICO score minus 30 or 40 points. Then once I've shopped around to 3, 4, 5, etc lenders, I pick which one I want to do business with and have them do the hard hit to give me a firm quote on rates and then I rate lock. In reality the hard hit in this case is usually only 2-5 points off the score.
As for doing 2 cash out refi's at once it is possible, you'd have to ask the lenders you're working with for a more firm answer for your specific situation. There are a few main factors at play, interest rate old vs new and loan amount old versus new. This will affect your monthly payment. One of the cash out refi's will drop or increase your monthly payment affecting your DTI. The second cash out refi will do the same. So if both are going to increase your payments and raise your DTI, it would be more situational if you could do both in general / both at the same time. If one or both refi's allow you to pull out cash and drop your payment, then thats the best case scenairo
Rental Property Investor · Atascadero, CA · Member since 2008 · 9 posts · 1 vote
5y
@Jody Sperling
Thanks for the insight! I thought credit checks had more impact than that.
I've done HELOC's before on my primary residence, but not on investments, and I've always gone with my lender on the 1st mortgage. Where do you look to find the best HELOC?