Borrowing money. What order should I tackle each of these steps?

1 Reply

I plan on getting pre-approved for a loan for a multifamily rental purchase. I also want to open a line of credit in case of an emergency (since I don't have a lot of capital yet.) I also would like to refinance my home for a better interest rate. 

I'm trying to strategize on what to do first. That is a lot of hard inquiries on my credit score and I'm trying to be tactful with this. 

I was going to get the handiline first in October and then wait 7 months to get preapproved (since it takes that long to have a hard inquiry removed from your credit history). But then I also thought that it might be a good idea to refinance my current home to save on some interest there before rates go up.

What do you suggest the order should be?

Order of operations:

1) Refinance current house. Which you should do anyways given the current rates (low) and the general trend for the last week (rising).

2) HELOC.

3) Preapproval.

If you go 2 before 1, the refi will have worse interest rate pricing. If you go 3 before 2, the HELOC down payment funds can't be considered.

FICO doesn't treat mortgage inquiries the same as credit card inquiries. Don't stress too much about that.