The home buying process can be exhausting. If a buyer is “in escrow,” it means the weeks of visiting potential properties and making offers is almost over. Once the transaction is finalized, buyers officially become homeowners. However, escrow doesn’t mean the process is over, and it’s important to be careful. Here are a few things prospective homeowners shouldn’t do while in escrow.
Get a New Job
Career advancement is usually a cause for celebration. However, while in escrow, it’s better to play it safe. To close escrow, you need to show the lenders you’re financially responsible. Lenders usually prefer buyers with consistent job histories and upwardly mobile financial positions. If you get a new job during the escrow period, the lender may decide to reexamine finances based on the new information, which could extend the escrow period and lead to denied loan applications.
Be Difficult to Contact
People in escrow need to be easy to contact by email and phone. If you don’t quickly respond to your lender, it might impact the escrow process. When calls and emails go ignored, it could push back the property’s closing date. Throughout the escrow period, stay in town, be easy to contact, and respond to inquiries as promptly as possible. Being readily available facilitates the escrow process and demonstrates financial responsibility.
Forget to Pay Your Credit Card Bills
When buying real estate in Little Italy San Diego or another neighborhood in the downtown area, a good credit score is essential. During the escrow period, don’t do anything that could negatively impact your credit score. There are many things that can cause a credit score to drop, and you should try to avoid all of them. Don’t forget to pay monthly credit card and student loan bills, and avoid applying for new lines of credit, as it could result in a hard inquiry and cause your credit score to drop by a few points. Also try to avoid any delinquencies, which could lead to derogatory marks on your credit score. If your credit score suddenly drops while you’re in escrow, the lender is sure to investigate. To ensure the escrow process goes smoothly, don’t make any decisions that alter your financial outlook.
Go on a Shopping Spree
When closing on a house, it can be tempting to go shopping for other big purchases, ranging from a new washing machine to a bedroom set. During escrow, don’t whip out your credit cards for high dollar purchases. If your debt-to-income ratio changes appreciably while you’re in escrow, the lender will notice. Lenders look closely at this ratio when determining financial status, and they may deny a mortgage application if your debt spikes during escrow. There’s no reason to buy new appliances and furniture for a home you haven’t purchased yet, so you should hold off on using your credit cards until the escrow period is over.
Whether you’re in escrow for condos in East Village or lofts in Gaslamp, it’s important to follow the above guidelines to ensure you get the home you’ve been dreaming of. For additional home buying tips, contact the trusted real estate agents at 92101 Urban Living. Call 619-649-0368, and we can help you find your ideal property. ')}