Do mortgage companies check your credit right before closing?

Question

If I am about to close on my house, will the mortgage check my credit again?

Answer 1

They sure will. That's why your loan officer instructed you not to make any large purchases (new car, furniture, etc.) before you close on your loan. They will run a new credit report the day before settlement to be sure all is still in order.

Answer 2

Hello Stephanie, The true answer is that it depends on the type of program and the investor. Some investors will pull your report the day before closing as a QC (Quality Control); however, most do not. Other investors may pull a separate report if your mortgage professional uses a different reporting company (i.e. Kroll Factual Data vs. Landsafe). The other answers about lenders repulling reports due to a time lag are correct. You are permitted 120 days to close a loan after credit is pulled (or 180 if it's new construction). My recommendation is keep doing what you're doing. If you already have good credit then you are doing fine. Ask your mortgage professional is he or she anticipates the lender repulling your credit. I personally submit my loans to investors that typically do not repull a credit report for the reasons that you never know what can happen in 30 days. Please contact me if you have any additional questions or concerns.

Answer 3

Absolutely. Some of them will check right before funding. Others will check after funding but before recording, when they can still call the money back. They are committing a very large sum of money to the proposition that you intend to pay them back. By comparison, $20 for a credit check is nothing.

It's okay to shop your mortgage around. Thanks to NAMB, all mortgage inquiries within a fourteen day period count as precisely one inquiry. But don't let the people at the carpet store, the drapery store, or the furniture store check your credit. Don't give them your social. Don't give them your driver's license. By preference, do not even give them your address and phone number, because those can be used to run credit.

Answer 4

You betcha! You typically don't get final approval on the mortgage until about 24 to 48 hours prior to closing. They do run a final credit check at that time. If your credit situation has changed significantly it can result in loss of the mortgage or a change in the previously offered terms.

Answer 5

they check it during the whole processing time of getting a mortgage...good luck, and don't apply for credit or charge anything.

Answer 6

Not all lenders will run your credit at the end. However most of them will.
They will also make sure you are still working, so don't quit your job either.