Credit Score Impact of Making Multiple Offers and Does it Matter?

[Jesse Kailahi]

I've been listening to a lot of BP podcasts and attended a webinar. A piece of the "process" is analyzing properties and putting down offers on multiple potential deals, constantly, until an offer is accepted. Hypothetically, let's say you have secured a few properties, you're in your second year of real estate investing, and you are still going through traditional financing and using conventional loans.. Does this mean that you would have to become pre-approved and/or enter into contract on properties every 60 days since pre-approvals only last something like 90 days? Your credit score will take a beating if you are putting offers down throughout the year, won't it? Do hard money lenders check credit? Do you, should you, prevent your credit score from tanking?

[Chris Mason]

Originally posted by @Jesse Kailahi:

Does this mean that you would have to become pre-approved and/or enter into contract on properties every 60 days since pre-approvals only last something like 90 days?

 For people that ask for it, I have them sign an agreement that basically says they understand that the preapproval is only as good as that snapshot in time that I took, and any deviation will void the preapproval, so they promise to update me about any changes to their credit/income/asset situation allowing me to re-work numbers and re-preapprove, and then I remove the expiration date language from the preapproval letter.