Your mortgage rate is based on your credit profile at the time you lock. The lender pulls your credit when you apply to determine your rate eligibility. Before closing, they will pull your credit again to verify nothing has changed.
Here is how the credit pull process works with rate locks.
Rate Based on Credit at Lock
When you lock your rate, the lender uses the credit report and score they pulled at application. That credit profile determines the rate you qualify for. Higher credit scores qualify for lower rates. Your locked rate reflects the score at that moment.
If your credit improves between application and lock, you might qualify for a lower rate. However, once you lock, the rate is set. If rates drop or your credit improves, you would need a float-down option or a new lock to benefit.
Second Credit Pull Before Closing
Most lenders perform a soft credit inquiry shortly before closing to verify that your credit profile has not changed. This is not a full hard pull in most cases. They are checking for new accounts, increased balances, or missed payments.
If the second pull shows significant negative changes, the lender may need to reassess your loan. This could affect your rate or approval. Keep your credit stable between application and closing.
How to Protect Your Lock
- Do not apply for new credit cards or loans.
- Pay all bills on time.
- Do not carry large credit card balances.
- Avoid co-signing for anyone.
Bottom Line
Your rate is based on your credit at lock time. A second pull before closing verifies stability. Keep your credit steady from application through closing.
