Credit score questions

2 Replies

Hi, first post here. I'm going to do a cash out refinance on a commercial building that I own outright in order to purchase a rental or three. So mortgage number 1 (cash out refinance) will occur this year, then possibly 2 or 3 more mortgages in early 2022. How important is it to get all these done within 45 days so as not to negatively effect my credit score? Has anyone done this over a longer time frame and had negative results? Trying to not screw up here, thanks for any advice.

@Julie Myers I closed on one property in February of this year and one in July of this year and just lost a deal due to an unforeseen structural problem and had my credit pulled all three times. A $4,000 purchase on my credit card that I paid off immediately affected my credit score more than the pulls.

If you’ve got mediocre credit I could see this hurting more, but mine is exceptional so I was surprised at the 20point drop for the purchase. I think the credit pulls were like 7 points.

It went back up by the 20 the following month and might have taken 2-3 to recover the full 7pts because it was taken from a different area of how they calculate the credit score.

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