How does the credit check works when buying multiple properties?

Question

I am buying my first property, but had a deal that didn't go through in Aug. One of those banks checked my credit twice one week apart! Now my credit score decreased so I would like to know how do other investors do it so that the credit score is not affected? My broker is telling me that I have to wait 2 years before I can refinance or buy another property. And I read in my credit report the hard credit checks stay in my report 3 years!

Tarik Turner · Answer

You do not have to wait 2 years to apply for another loan for an investment property.  That sounds like the criteria for a specific loan product offered by your bank.

also every time you apply for a loan your credit will be pulled..  Most Lenders can use the same report if you reapply within 45 days or so but no real way around a credit pull...

Xochitl Cadena · Answer

@Tarik Turner Yeah, that’s what I did. I attached a screenshot and various banks didn’t do the hard pull. This specific bank did so I think they need to remove it but not sure what department I need to get in touch with in order for the bank to remove the hard check from my record.

Have you ever had to remove a hard credit check from a borrower or know of any other lender that did this? I would like to know if it is a straightforward process.

Thank you again!

Tarik Turner · Answer

Not a credit expert however we tend to ask borrowers to submit a free credit report so they can avoid a hard pull prior to issuing terms.. That way if the client doesn't agree to terms then there would be no hard pull.  Maybe next time you shop around for a loan see if you can at least get a quote based on a free credit report and if you agree to the terms then sign off on the credit authorization form for a hard pull.

(on a side note free credit reports tend to be slightly higher than an actual hard pull but it gives your Lender parameters to work with)

Xochitl Cadena · Answer

@Tarik Turner

Thank you Tarik! Would you suggest a best approach to remove that hard inquiry? I did request specifically to not pull my credit without my approval, but that specific lender did it twice one week apart but still ended up not committing. I requested to please remove the inquiries but haven’t heard back. Not sure what department I need to contact specifically.

Cheers!