What Not to do Before the Close of Escrow
You’re about to buy a home, and are now “in escrow” Closing day is just around the corner, but you’re not out of the woods yet. Here are several missteps a home buyer can take that will put getting a loan, finalizing the transaction, at risk.
Don’t go out of town
Going on vacation or becoming hard to reach while in escrow is not a good idea, especially if your lender needs to get in touch with you to process your loan. Any glitches in that process can push back the closing date for your home.
Don’t change jobs
Changing jobs during this time period could lead your lender to question whether you’ll be able to afford that home. Lenders prefer a steady and consistent job history.
Don’t be a big spender
You don’t want to end up buying items for a home you don’t home. Big purchases will throw off what’s called your “debt to income ratio” (which measures how much of your monthly income goes toward debt obligations), ratio lenders consider when evaluating a loan application. Try to keep the balances on your credit cards low and don’t take on new debt (this includes co-signing on a loan) until after you close on your home Don’t pay bills late If you’re about to close on your home, stay current on your bills, you don’t want loan goes through. Any changes to your credit status could affect the likelihood of closing on your new home.
Don’t open/close credit card accounts
Opening up new credit cards or closing old ones just before closing on your new home could negatively affect your credit status.
Don’t move big amounts of money
Before that home is definitely yours, don’t transfer large amounts into your checking or savings accounts. If your mortgage company sees a large amount of money moving around, they may wonder why and raise the flag.