Shopping for real estate capital shouldn't penalize your credit score. Learn how to find the best rates while keeping your credit report untouched.
In the world of private lending and hard money, a 'hard' credit inquiry can dip your score by several points. For active real estate investors juggling multiple applications, these inquiries add up, potentially moving you into a higher interest rate bracket. At Lendersa, we advocate for transparency and credit protection during the discovery phase.
Most hard money lenders are primarily asset-based, but they still use credit scores to determine the interest rate. Before reaching out to lenders, check your own score via a free service that doesn't trigger an inquiry. Know your exact middle score so you can provide it as 'stated' information.
The most efficient way to compare rates without multiple credit pulls is to use a centralized marketplace. Instead of applying to ten different banks, you use one portal that specializes in private capital.
When contacting lenders, explicitly state that you are in the 'rate-shopping phase' and are not authorizing a credit pull yet. Provide them with a detailed deal summary, including:
Lenders can generate a Preliminary Term Sheet based on these numbers, giving you a clear view of their points and interest rates.
Once you have 3-5 quotes, don't just look at the interest rate. Compare the total cost of capital, including:
Don't let unnecessary credit inquiries slow down your investment momentum. Use the Lendersa platform to compare hard money rates from verified lenders who understand your need for speed and credit security.