can my interest rate change once i lock on a 30 fixed if my credit score went down?
by Mortgage Rates on Thursday, September 23rd, 2010 | 4 Comments
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Once it’s locked, it’s well… locked. Nothing should be able to change it, whether it’s your credit rating, Alan Greenspan, the apocalypse, or a mean banker.
No thats the difference btw locked and variable locked cant vary
Your file will have a credit report in it. If the report is current then the lender does not need to go back and get a new report.
A rate lock is the lender saying they will not change the rate because of market changes. If the rates go up or down your loan rate is locked in.
If your file has reasons that you do not qualify for a loan or something material changes (loss of job) the loan offered can be pulled. In effect you are making a series of promises and if those promises are not true when it is time to sign for the loan the lender could pull back the loan.
A credit score change is not likely to be an issue. A court action or a filing for bankruptcy and other such things would be an issues.
So, it will really come down to if the lender has a reason to reopen the file and to recheck the information. They likely will stick with the credit report that is in the file unless they have a reason to doubt the report.
Until the loan is in place and you have signed off the documents the lender’s underwriter can reopen the file. Not common but within the rules.
John’s answer is dead on, but let me correct something your mortgage company told you…
Unless you are applying for a loan on a property presently under construction, your credit report can be used for 90 days. Your loan would need to close within 90 days of your credit being pulled or a new report is needed.