Baking a knife handle will cause it to shrink a little... seeing as though it will be attached to the knife before baking. Leaves pins and tang proud... so needs fettling, which removes the work you did with baking around the tang and pins... only a bit, but it will.
Taking advantage of Charles' Law of gas physics, the oven baking process is vastly superior to any soaking and, you are done, completely, in 3mins, 30 secs. Never again.
I've done it with beeswax over raw birch, a carved dish. Works every bit as well but the initial painting with beeswax was an unbelievable spattered mess in my kitchen.