Congratulations! You have finally found the house of your dreams. You made an offer, it was accepted by the seller, and you are in escrow. The closing is only weeks away and you’re feeling pretty good. It is smooth sailing from here, right? Most likely. However, more than one buyer has had the wind knocked out of his sails at some point my some of the mistakes below. If at all possible, steer clear of the following scenarios after you have gone into escrow.
Don’t take on new debt. The temptation is strong. There are some many purchases that people want to make in connection with their move; appliances, window treatments, furniture, etc. By doing this you may change your “debt-to-income ratios”, which is the relationship between your income to your debt.
Don’t change jobs. If at all possible, do not make a career move during the time between your mortgage application and the close of escrow of your new home. One of the factors mortgage companies consider is the length of employment, they are partial to stability. At very least, changing jobs initiates the need for more paperwork and may delay your closing.
Do not lease a new car. This should go under the heading of “no new debt”. Although you may feel you do not own the car, the commitment still changes your “debt-to-income ratios”.
Do not pack too soon. Well, go ahead and pack your clothes and dishes, but do not pack your bank statements, tax returns or other important paperwork. Most especially, do not pack your checkbook! More than one buyer has had closing delayed while a friend or relative hurried over with additional funds because the checkbook was in the moving van!
Many buyers seem to view the mortgage and escrow process as a snap shot of their financial lives at a given moment in time. It is not. It is an on-going process that takes into account everything you do right up to the day of closing.
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