Keep Escrow on Track: 3 Things to Consider When Handling Finances During the Closing
You did it! The ink is dry on your home purchase contract and the escrow clock is ticking. Now all you have to do is wait until closing day and that property will be your new home!
Not. So. Fast.
If you’re new to the home-mortgage financing game, you might be about to make a crucial mistake. Even if you’ve kept escrow short, that beautiful new home isn’t yours until you’ve jumped the final hoop on escrow closing day. That’s when you, the seller, and your lender will finalize the deal.
Some buyers aren’t aware that their lender will take one more eagle-eyed look at your loan-approval docs that day. If they see any red flags, the deal could be off—and the phrase “falling out of escrow” will feel, quite literally, like you jumped off a cliff.
Here are 3 important rules to follow as you count down the days for escrow’s close:
#1: Stay out of big box stores
If major appliances for the new house are on your to-do list—WAIT! The temptation to grab that deal on a new fridge (and the awesome, low-interest credit card the sweet salesperson offers you) will set off alarms with your lender.
#2: Stay put in your day job
The lender wants to see that you’re financially stable. A job change during escrow could be a deal-breaker.
#3: Say no to salespeople (of any type!) who want your social security number
Completely avoid the temptation to make a purchase (like a car) where the vendor must check out your credit score. If they don’t have your social security number, they can’t contact any reporting agency and unintentionally put a ding in your credit score. Also, don’t open or close any existing bank or credit card accounts during escrow—that move leaves you vulnerable to a credit score change.
In short, the wait for escrow to close is like a game of “freeze tag” when you were little. Lay low and avoid any changes to your bank accounts, credit cards, or income so you look as attractive to your lender when escrow closes as you did when you were first approved.
Have concerns?
Our Sojourn agents have seen it all. We know the financial traps to avoid and how to play it safe to ensure your loan goes through without a hitch on escrow day. We have the knowledge and tools to help you purchase your next home or property.
Connect with one of our agents today!
