Opening Business Credit Cards During Pre-Approval Process (BRRRR)

[Julian Pilate-Hutcherson]

I am in the process of setting up initial purchase and refinancing lending for BRRRR deals in a new, low priced market (avg. purchase price of around $60,000). I plan on opening balance transfer business credit cards and 0% intro interest credit cards to fund my purchase and rehabs. At the same time, I want to get pre-approved for refinancing before even searching for properties.

I know when applying for a mortgage, opening LOC and receiving hard inquiries during the process may mess up the process and effect how much I can get approved for. However, since I assume I would only need to get approved for at most $150,000 (75% of max assumed ARV of $200k) and I know for certain that I can get approved for at least $300,000, would it even matter if I opened these LOC before, during, or after the pre-approval process?

[Joseph A.]

Originally posted by @Julian Pilate-Hutcherson:

I am in the process of setting up initial purchase and refinancing lending for BRRRR deals in a new, low priced market (avg. purchase price of around $60,000). I plan on opening balance transfer business credit cards and 0% intro interest credit cards to fund my purchase and rehabs. At the same time, I want to get pre-approved for refinancing before even searching for properties.

I know when applying for a mortgage, opening LOC and receiving hard inquiries during the process may mess up the process and effect how much I can get approved for. However, since I assume I would only need to get approved for at most $150,000 (75% of max assumed ARV of $200k) and I know for certain that I can get approved for at least $300,000, would it even matter if I opened these LOC before, during, or after the pre-approval process?

If you are going to go this route I would make sure the business lines of credit you apply for don't show up as a revolving accounts on your personal credit report. This could impact the amount you get approved for as it will make your debt to income ratio higher. It would also depend on how many cards and lines of credit you are applying for, if its only a couple then you should be fine unless you plan on refinancing really soon after you get the lines of credit.