Which credit pull in the mortgage process determines rates?

Jun 11 16 Comments

My credit score is 720 right now. I paid off $18K worth of credit card debt last week so my credit score should be around 800 once new balances are reported to credit score companies. Should I wait before applying for mortgage? I know they run credit check several times, first for pre-approval and another one before closing. Which one will determine interest rates? If it's the one before closing then I don't see point in waiting cause my score is good enough to get pre-approved and it will be up to 800 at the closing time.

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TOP 16 Comments
  • Microsoft newtoblind
    Also I don't think your score will improve this much.
    Jun 11 7
    • Also, from what I read highest tier for mortgage rate is 740+. So as long as it's 740 you get lowerst rate.
      Jun 11
    • Oath Atinlay2
      0 % utilization won’t help you either. You’d want <10%
      Jun 11
    • Amazon blindError
      The ideal utilization is a balance of $20 reporting on a single card with zero balance on all others. Pay before the statement cuts to get it down. Don't overdo it because zero on ALL cards is actually worse, you need a small but real balance on one card.

      I agree with others you wind m won't see an 80 point jump, but you just need to get to 740 to get the best rate.
      Jun 11
    • Exactly $20?
      Jun 11
    • Amazon blindError
      No, really anything under 5% of your limit
      Jun 11
  • GE / IT PLkx61
    You absolutely won’t go up 80 points, 10-15 maximum. However I LITERALLY just spoke with Chase and my mortgage lender about this exact thing on Sunday; he told me the report they run at the start is valid for 120 days. As long as you close within that time they will not run a second credit pull, your rates are determined based on the first pull only - they won’t change once locked in unless there is a material change in circumstances (change in jobs, etc)
    Jun 11 0
  • Facebook public2
    Your score wont change so it doesn't matter
    Jun 11 2
    • Credit utilization will go down, why won't it change? Every score simulator is showing that it will improve by a lot.
      Jun 11
    • Facebook public2
      It will over time for sure but short term you won't see much change. Your history will be unique of course but generally speaking credit score is about consistency over long periods of time. Aim to keep your utilization under 10% and ideally you have more credit history than your age.
      Jun 11
  • Oath Atinlay2
    It won’t matter for pre-approval. even after it posts, they’ll see it on your last payment amount and high balance for that account.
    Jun 11 2
  • Microsoft Mephistopheles
    Lol
    It won’t go anywhere near 800.
    Jun 11 0