Don’t kill your credit before you close escrow

Buyer’s are you in Escrow? As Christmas arrives don’t buy all the presents on your credit card. Also be sure not to take advantage of any Black Friday or Cyber Monday deals using your credit card or applying for new lines of credit.

With tight lending requirements the slightest change in your credit score, or debt ratio can affect your loan, interest rate or a successful close of escrow.  I would suggest speaking to your lender and have them explain what you can and cannot do.

Below are a few suggestions what not to do before closing escrow

  • Becoming hard to reach, for example don’t go on Vacation. Make sure you are easy to reach for your lender in case he/she needs last minute information or signatures
  • Don’t change jobs. Remain consistent and secure. Don’t make the lender feel uneasy
  • Don’t be a big spender, those Christmas present will have to be a little smaller this year. Wait with any new home appliances you need in your new home until your escrow has closed.
  • Make sure all your bills are paid. Make sure there are no late payments or missed payments.
  • Don’t open new credit cards or bank accounts.
  • Keep all your finances consistent, don’t move huge sums of money around

All the items above may seem simple and common sense but in times of higher stress during a real estate transaction you sometimes forget about the little thinks to pay attention to which can have huge impact on the outcome of your real estate transaction.



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