Buying Guide -DO NOT DO DURING THE ESCROW PROCESS
I am often asked how to prepare for the home buying process by both first-time buyers and buyers that have been through the process multiple times and many of the same things apply. Among them are things you should not do during the escrow process. I always advise my clients on these guidelines as a part of the escrow process but reiterating them is always valuable. You never want to jeopardize finalizing the result and getting the home of your dreams. Some guidelines to follow are:
- Do not change your circumstances from the original information given.
- Do not apply for credit.
- Do not quit your job or change employment.
- Do not co-sign on any loan.
- Do not shred and documents that the lender may need for documentation such as pay stubs and bank statements.
- Do not deposit cash into your accounts, all monies must be documented.
- Pay all bills on time.
- Do not get any judgments or collections.
- Be very very conservative about credit card charges during the home buying process.
- Do not close any credit card accounts, this can negatively affect your scores.
- Account transfers need to be documented, avoid any unnecessary transfers.
- Do not engage in any account disputes, this can negatively affect your score.
- If you are selling anything to raise funds for your down payment do a bill of sale and document the transaction by making a copy of the transaction with a copy of the cashier’s checks, or money orders or internet transfer, (such as PayPal).
- If you are getting married before the close of escrow, your lender must be aware of this.
- Ultimately if anything comes up during the buying process let your lender AND your agent know immediately.