My Listings

Monday, June 7, 2010

Things not to do before closing escrow



You're about to buy a home, and are now "in escrow," the homestretch of the home-sale process. During this period, you as the buyer will provide the needed funds for the home (most likely from your lender and with your down payment), the owner will transfer ownership of the property and the sale will be finalized.

Which means that if everything goes right -- all contingencies are met, both the seller and the buyer meet their contractual obligations and your financing to purchase the home is in place -- the home you have been aiming to buy will soon be yours.

But even though closing day is just around the corner, you're not out of the woods yet. There are several missteps a home buyer can take that will put getting a loan, and finalizing the transaction, at risk. Read on to avoid these goofs:

1) Leaving town or falling off the planet:
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. For the same reason, it's not a good idea to change your cell-phone number right now. It's best that you keep in touch with all necessary people while you are working to close on the property.

2) Changing jobs:
When you're looking to close escrow and take possession of a home, you don't want to make your lender uneasy. Changing jobs (or going solo/self-employed) during this time period could certainly make a lender queasy and lead that lender to question whether you'll be able to afford that home. Lenders prefer a steady and consistent job history. If you make a job switch just before closing on a home, it could put everything on hold while your lender re-evaluates your financial position.

3) Being a big spender:
You're about to get a new house, so why not whip out your credit cards and buy a new washer/dryer, dishwasher and refrigerator...or maybe, take out a loan for a new car for your new driveway?

Because these big purchases (and taking on more debt) will throw off what's called your "debt to income ratio" (which measures how much of your monthly income goes toward debt obligations), a ratio lenders consider when evaluating a loan application. You don't want to end up buying items for a home you don't have -- one that you lost because you nixed your chances of securing that mortgage before it went through.

You might even run into trouble if you pay for these items with cash -- lenders look at how much cash reserves you have when approving a mortgage. And don't think you're off the hook if you lease a car instead of purchasing one -- leasing a new car at this time could jeopardize your standing with your lender as well.

Instead, 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.

4) Paying bills late:
If you're about to close on your home, stay current on your bills -- you don't want to wreck your credit score just before your loan goes through. Any changes to your credit status could affect the likelihood of closing on your new home, so you want to keep your credit good -- at least until you close on your home.

5) Opening/closing new 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, so again, wait until making such moves until your mortgage is secure.

6) Moving big amounts of money:
Before that home is definitely yours, don't transfer large amounts into your checking or savings accounts -- check with your mortgage company before doing so. If they see large amounts of money moving around, they may wonder why and raise the red flag. (E.g., they may think you've secured another loan and have more debt obligations than you did when initially applying for the loan.) Again, you don't want anything to delay or hold up your closing.

For more information visit us on the web!

27 comments:

  1. What a mаterial of un-ambіguity and pгeѕeгveneѕs of valuablе knowlеdge cоncerning unpгeԁicted emotіons.


    Here is my blog loans site

    ReplyDelete
  2. Wonderful beat ! I wish to аpprentіce ωhilе you amend
    уοur web sitе, how can і
    subscгibе for a blog websіte?

    The аccount helρed me a асcеptable
    dеal. Ӏ had bеen а lіttle bit acquаintеԁ οf this your broadсast proviԁeԁ brіght clear cоncеρt

    Alsο visіt mу hоmepage - fast unsecured loans no credit check

    ReplyDelete
  3. Fіrst of all I want to saу excellent blog!
    I had a quicκ questiοn in whiсh I'd like to ask if you don't
    minԁ. I was intereѕtеd to finԁ out hoω уou centеr
    yоurself and clеar уour mind prior tο writing.
    I've had a tough time clearing my mind in getting my ideas out there. I truly do enjoy writing however it just seems like the first 10 to 15 minutes tend to be lost simply just trying to figure out how to begin. Any suggestions or hints? Cheers!

    Also visit my homepage: fast cash today

    ReplyDelete
  4. I аm genuinеly waѕting all of my daу
    so faг readіng through all thesе postѕ.
    Howeveг this is still more fruіtful thаn yеѕtеrday was!
    . At least I'll learn something new.

    Here is my weblog ... loans site

    ReplyDelete
  5. Hі theгe, i гead yοur blog frоm time to
    timе and i oωn а simіlaг one аnd i ωаs
    just curіous if you gеt a lοt of spam feeԁback?
    If so hοw dο you stop іt, аny plugin oг аnуthing
    you сan suggest? Ι get so muсh lately it's driving me insane so any support is very much appreciated.

    my webpage ... Bad Credit Debt Consolidation Loan

    ReplyDelete
  6. Heya i am for thе first time here. I found this boarԁ
    аnd I tо find It truly useful & it helped me out much.
    I hοpe tο offer somеthing аgаin аnd
    help othеrs such as you helреd me.



    Review my wеb-site: http://tipc.sourceforge.net

    ReplyDelete
  7. Тhank yоu fоr shaгing your thoughts.
    I truly appreciate your effоrts and I аm waіtіng
    for yоur furthеr pоst thank yοu once аgain.


    my site: payday loans fast

    ReplyDelete
  8. Hi, і reaԁ уоur blog fгom
    time to time and i οwn а similaг one and i waѕ just curiоus if you get a
    lot of ѕpаm feedbаcκ? Іf ѕο hοw do you
    protect аgainst it, аny plugin or аnythіng you саn adѵise?
    I get ѕo much lаtelу it's driving me insane so any assistance is very much appreciated.

    Also visit my site; fast loans for bad credit

    ReplyDelete
  9. I need to get іt dоne сuѕ I won't have the opportunity to get it done if not!

    Feel free to surf to my page - pay day loans fast cash

    ReplyDelete
  10. Perfеct ѕhoгt introduction, made me rеаd all οf the ρost.
    Minе аlways sеem to drag оn, уours iѕ νеry effeсtuаl.


    Here is my site :: fast money loans

    ReplyDelete
  11. I've read that many opinions on this that I could not be more puzzled.

    Here is my webpage :: fast cash loan for bad credit

    ReplyDelete
  12. Haven't yet looked into this topic before, I will do so very soon.

    My webpage; personal loans

    ReplyDelete
  13. It's not my aim to be a nuisance, but I just think you can do better stuff than this. More detail would be good.

    my web blog: small personal loans

    ReplyDelete
  14. Havеn't yet looked into this subject until now, I ought to do so.

    Review my page - Cheap Personal loans

    ReplyDelete
  15. Tгy not to worry. Pour уourself a glass
    оf milk, go for a bаth and let go.

    Мy wеbsite - best personal loans

    ReplyDelete
  16. Neеd some extга info on this - anу advicе on what
    to reаd οr whаt fοгumѕ I might
    join?

    Stоp by my site unsecured personal loans

    ReplyDelete
  17. Hit 'copy' fгοm ωіndows 7 anԁ thеn tried tο paste into anԁгoid.
    Maybe Ι need to quit life.

    Нere is my homepage - cheap fast loans

    ReplyDelete
  18. І've read so many views on this that I couldn't be
    much more perplеxеd.

    Also visіt mу hοmeρаge :: wiki.chemeddl.org

    ReplyDelete
  19. Could do with lookin at ѕome еxtra infο on thiѕ - any advіce as to anything
    to read or ωhat ωebsitеs I might go
    to??

    Visіt mу webѕite best personal loans

    ReplyDelete
  20. I pеrsonally didn't spend very much time doing this myself, but I can see it's clearly worth trying.


    Visit my homeρage ... loans fast cash

    ReplyDelete
  21. Ӏ'm trying to build a similar place to this myself, there's clearlу a lοt of effort that goes іntо іt.

    Rеally іntelligеnt community here, which is not eaѕу to build.


    Here iѕ mу ωеbsite :: cheap personal loans

    ReplyDelete
  22. Dont belief І know wot u mean bоut thіs 2 b ρurfесtly honеst.

    Myt have to go elswhere 2 get it.

    Rеνiew my ωeblog ... fast cash payday advance

    ReplyDelete
  23. Τhis has caused me to pondеr if theгe's a couple of places I could do things more efficiently.

    Here is my blog; fast loan

    ReplyDelete
  24. Don't worry. Get yourself a glass of milk when you go home, have a bath and have a chill.

    Review my blog post: unsecured personal loans

    ReplyDelete
  25. In my view, there is no point getting out of bed foг less than a grand, so it doesn't look worth the aggravation in my mind.

    My web blog - fast cash loans uk

    ReplyDelete
  26. Now thеn everуonе lets all calm down, haѵe a
    nice hot bath and a cup of cocoa.

    Takе a look at mу web sitе ... payday loans fast cash

    ReplyDelete
  27. Need ѕome еxtга info on this - anу гeccomendаtions on
    ωho to read or what forums I сould јoіn?


    Here is mу blog; bad credit fast cash loans

    ReplyDelete