credit score nose dive

[Michinori Kaneko]

Hi All,

I'm a fairly new investor.  I started looking at real estate investing around May last year did lots of research, and closed on my first property in mid September.  I closed on my second in December, and third and fourth closing tomorrow.  My credit score was 800+ when I started the research process, but between opening new mortgages and lots of new inquiries on my account, my current score is around 750, and after two new mortgage opens tomorrow i'm sure it will fall below the 740 excellent rating.

I have 11 years of history, never a late payment, and a 6% utilization rate. I use the Freddie Mac loans, so after the loans are funded, i get another inquiry from Freddie Mac to make sure my loan still qualifies for their portfolio (?) so i'm expecting another 3 inquiries to hit my credit score. I know there are investors out there that does BRRRR strategy and does multiple loans a year (e.g. David Green said he does like 2-3 deals per month on the podcast). how do you deal with all the inquiries lowering your credit scores? is there a method to get my credit score up other than just waiting for it to go back up after like a year? Thank you for your help!

[Russell Brazil]

Credit inquiries from mortgage lenders within 30 days are grouped together for scoring purposes as if they were 1 single inquiry.

Inquiries from mortgage lenders simply dont have much of an affect on somones credit profile that has good credit.

It is unlikely you are getting a score from someplace that uses the same algorithm that lenders actually use. Free credit scores for instance from your credit card are not the same scores lenders use. There are a dozen or more algorithms that Fico has for various reasons. Myfico.com has many of your scores, but they dont make all of them available.