Q: Can You Make Major Purchases While in Escrow?

You need to show restraint when it comes to shopping during the escrow period.

One of my past clients started buying furniture for their house while in escrow—that’s a definite no-no. When you’re buying a house, you’re operating on a certain credit score, and if your credit score goes down, you may have issues qualifying for your house. That happened to my client, so we had to get someone to get those charges off his credit so that he could move forward to the close. 

Another client bought a motorcycle before the close of escrow and we, too, had to get the purchase off of his credit report.

Ultimately, do not make any major purchases, be they for your new home or otherwise, until after the close of escrow so that you don’t have any credit issues that require cleaning up and jeopardize your ability to close on the home. 

If you have questions about today’s topic or anything else to do with real estate, don’t hesitate to reach out to us. We’d love to hear from you.

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