Investor · Philadelphia, PA · Member since 2017 · 6 posts · 0 votes
I am a new investor. I wanted to know if applying for multiple investment mortgages affect credit score. I see that some people are buying multiple houses per month and so does this affect their credit score. Same with people applying for HELOC for these investment properties. I am trying to understand the impact.
St. George, UT · Member since 2017 · 20 posts · 8 votes
9y
Don't know much about it, but I just applied for a cash-out refinance and then a HELOC. My credit was 740 when I applied for the refi. Then, on the HELOC application, I was informed it was down to 723. Not sure if it's lower now, or if that's where it stayed.
Investor · Zürich, Zürich · Member since 2016 · 292 posts · 115 votes
9y
Those people "buying multiple houses per month" don't do so using mortgages - they buy all cash. Possibly do a refi down the road for some or go the commercial loan route. In any case, inquiries for mortgages are - as far as I understand - "hard pulls" so yes, they definitely impact your credit score. Then again, credit bureaus seem to treat these specific inquiries as less "bad" as the ones for e.g. car loans and such. So score seems to come back up rather quickly (assuming no other detrimental impacts).
In short: any loan you are getting that is processed via a financial institution (i.e. not via a private lender who doesn't pull your credit) will impact your score one way or another. Shouldn't really be a surprise, though?