HELOC or Refinance First?

[Anonymous]

I'd like to take advantage of the current interest rate reductions for three separate properties. First & second properties were both primary residences, at one time but have been rentals for the past 3 years; would like to refinance to get a lower interest rate (Rental #1 current rate is 6.92%; Rental #2 has a rate of 4.88%)...approx 17 years left on both mortgages. #2 will remain indefinitely, as it is our cash-flowing property, just wondering if it's worth the closing costs and fees to refinance. Third property has no mortgage (paid in full); used as family second home; would like to obtain a HELOC on this property to be used for home improvements (update kitchen, master bath). Question is: Which app should be processed first...HELOC or Refi, or does it matter? Will applying for one affect approval odds of the other? Scores hovering around 780, overall utilization <5%, no lates, no issues to prevent approval. Also, any suggestions on who currently offers best rates for either? Trying to narrow down our options. Thanks in advance for any input, advice, suggestions, etc.

[Revelate]

Refinance first it's the most difficult to get underwritten and it would be extra verification steps if done in the other order.  Lenders all grumble if not worse about having to vet new accounts that aren't on the credit report especially when it looks like there's a new debt incurred.  Money trail and all that too, for all the advances in the market you can still get an UW with their head up their tookus which can make your life far more stressful than necessary.

HELOC's are generally cheap and easy, pick based off rate and origination fees and you're basically done other than providing POI and maybe an appraisal.