When you're in escrow and obtaining a mortgage, there are several things you should avoid doing in order to ensure a smooth transaction. Here are the top 5 things you should not do during this process:
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Don't make any large purchases: One of the things that mortgage lenders will look at is your debt-to-income ratio, so if you make any large purchases during this time, it could affect your ability to qualify for the mortgage. This includes buying a new car, furniture, or appliances.
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Don't change jobs: Lenders like to see a stable employment history, so if you change jobs during the escrow period, it could raise red flags. If you must change jobs, be sure to let your lender know as soon as possible.
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Don't open any new credit lines: Opening new credit lines during the escrow period could also affect your debt-to-income ratio and your credit score. This includes credit cards, loans, or lines of credit.
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Don't miss any payments: This is a crucial time to keep up with all of your bills, as missing any payments could negatively impact your credit score and your ability to obtain the mortgage.
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Don't make any changes to your bank accounts: During the escrow period, it's important to keep your bank accounts stable. Don't close any accounts, open new ones, or make any large transfers between accounts, as it could raise questions from your lender.
By avoiding these actions during the escrow period, you can help ensure that your mortgage application goes smoothly and you can successfully close on your new home.
