Why does the lender do a credit refresh right before closing?

Why does my lender check my credit again before closing?

Your lender runs a credit check shortly before closing to confirm your financial picture hasn't changed since your loan was approved. Mortgage underwriters need to verify that you still qualify for the loan at the same terms.

This credit refresh typically happens within a few days of your closing date. The lender looks for new debts, missed payments, or changes to existing accounts that could affect your debt-to-income ratio or creditworthiness. Opening new credit cards, taking out car loans, or missing payments during this period can delay or derail your closing.

The lender compares this updated credit report to your original application. Major changes might require additional documentation or could affect your loan approval. Some lenders also verify employment and bank account balances during this final review period.

If something comes up on your credit refresh, contact your loan officer immediately. They can walk you through what documentation might help resolve the issue and whether your closing timeline needs to adjust.