I’ve seen this too many times.
As often as I try and warn my clients, there is always one or two that don’t heed my advice and do one of the things on this list. We don’t find out until we’re almost done with the loan (the lender does a final credit check right before closing), and all of a sudden, they don’t qualify for the loan anymore. Sometimes we can save it, but once in a while, there’s nothing we can do. It’s an absolutely horrible experience for all involved.
I’m going to say it again, in case you missed it the first time. The lender will do a final check on credit and employment to make sure that nothing has changed significantly. They do that to protect themselves. They are lending you hundreds of thousands of dollars – you better believe they will double check. So if your situation has changed, they will call you on it. I guarantee it.
Here is a list of things you SHOULD NOT DO while your loan is in escrow. In fact, it’s a good list of things not do to in the months before you get into escrow. It’s nothing major, and most of them are no brainers, but please read the list, bookmark this page, and refer to it during your escrow BEFORE you make any financial decisions.