What Not to do While in Escrow

What Not to Do While in Escrow

While in escrow, there are certain actions that you should avoid to ensure a smooth and successful real estate transaction. Here are some things you should not do while in escrow and the reasons behind them:

1. Don't Make Large Purchases: Avoid making significant purchases or taking on new debts during the escrow period. Large transactions or changes in your financial situation can impact your credit score and financial stability, which may affect your ability to secure a mortgage or meet the lender's requirements.

2. Don't Change Jobs: Lenders often verify your employment status and income during the mortgage approval process. Changing jobs or quitting your current job can raise concerns for the lender, potentially affecting the approval of your loan. It's advisable to maintain stable employment during escrow.

3. Don't Make Undisclosed Cash Deposits: Transparency is crucial during the escrow process. Large, undisclosed cash deposits into your bank account may raise suspicions and complicate the verification of your financial history. Be transparent about any financial transactions during this period.

4. Avoid Late Payments: Timely payments of bills and debts is essential to maintain a good credit score. Late payments can negatively impact your creditworthiness, potentially leading to issues with your mortgage approval. Pay all bills on time to avoid any complications.

5. Don't Skip Home Inspections: It's important not to skip or neglect home inspections during the escrow process. Inspections help identify any issues with the property that may need attention. Skipping inspections can lead to surprises after closing, causing disputes and additional expenses.

6. Avoid Changes to Your Credit Profile: Any changes to your credit profile, such as opening new credit accounts or closing existing ones, can impact your credit score. Lenders often check your credit history before closing, and significant changes may affect your loan terms or approval.

7. Don't Disregard Contingencies: Contingencies in the purchase agreement are conditions that must be met for the sale to proceed. Failing to address or fulfill these contingencies can lead to complications or even termination of the deal. Work closely with your real estate agent to fulfill all necessary obligations.

8. Avoid Negotiating Unnecessarily: Once you're in escrow, it's not the time for unnecessary negotiations. Renegotiating the terms of the deal without valid reasons can lead to delays and may even jeopardize the transaction. Stick to the agreed-upon terms unless there are legitimate issues that need attention.

9. Don't Ignore Communication: Stay in close communication with your real estate agent, lender, and escrow officer. Ignoring emails or calls can lead to delays and misunderstandings. Promptly respond to any requests for information or documentation to keep the process moving smoothly.

By avoiding these actions, you can increase the likelihood of a successful real estate transaction during the escrow period. It's essential to communicate openly, follow the agreed-upon terms, and address any issues promptly to ensure a smooth closing process.

Reach out with any questions - I would love to help!  804-350-0879 | [email protected] | chrissmallgroup.com

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It is my responsibility as your REALTOR® to ensure that when others around you are lowering their expectations, that this becomes the time for us to switch gears and discover how to leverage the market effectively to achieve your goals.

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