9 Things Not to Do While Your Home Loan Is in Escrow
Most loan delays are avoidable. From new credit to unexplained deposits, here are nine common escrow mistakes and how to keep your closing on track.
Getting your offer accepted feels like the finish line. It's actually the start of the most sensitive stretch of the whole process. Underwriters verify everything, and many lenders recheck credit and employment right before funding. Most delays I see in escrow aren't caused by the market or the house. They're caused by small, well-meant decisions that change the borrower's file.
Here are nine things to avoid between contract and closing.
Money moves
- Don't make large, undocumented deposits. Cash deposits, transfers from friends, or selling something for cash all need a paper trail. When in doubt, ask before you deposit.
- Don't move money between accounts without telling your loan officer. Every transfer creates something new to source.
- Don't spend your reserves. The savings you showed at approval may be part of how you qualified.
Credit moves
- Don't open new credit. No new cards, store accounts, or "buy now, pay later" plans, even for appliances for the new house.
- Don't finance a car or furniture. A new payment can push your debt-to-income ratio past the limit.
- Don't miss payments. Moving is chaotic. Turn on autopay for every account until well after closing.
- Don't co-sign for anyone. That debt can count as yours.
Life moves
- Don't change jobs or pay structure without a conversation first. Even a promotion that shifts you from salary to commission can change how income is calculated.
- Don't go quiet. Slow responses to document requests are the number one cause of avoidable delays and rate lock extensions.
What you should do instead
| Do this | Why |
|---|---|
| Answer condition requests the same day when possible | Keeps underwriting moving and protects your lock |
| Send complete statements, every page | Even blank pages; missing pages trigger new requests |
| Shop homeowners insurance early | Coverage can take time to place in parts of California |
| Confirm wire instructions by phone | Wire fraud targets buyers right before closing |
| Ask before you act | A two-minute call can prevent a two-week delay |
Why lenders check twice
Your approval was based on a snapshot of your finances. Before funding, the lender confirms that snapshot is still accurate: same job, similar debts, enough funds to close. It's not personal; it's how the system protects everyone, including you, from a payment you can't afford.
A quick weekly check-in routine for buyers
A simple routine during escrow can prevent nearly every issue on this list:
- Check your email and texts daily for requests from your loan officer, escrow, or agent.
- Send documents the same day when possible, every page, even blank ones.
- Review your bank accounts and note any unusual deposits so you can explain them before you're asked.
- Look at your calendar for upcoming contingency removal dates and the scheduled closing.
- Ask one question if anything feels unclear. There's no such thing as bothering your loan officer during escrow.
What happens if something changes anyway
Life doesn't pause for escrow. A job change, a medical expense, or a family emergency can happen to anyone. If something changes, call your loan officer right away. Many changes can be handled with documentation or a revised structure when the team knows early. The problems that become serious are usually the ones discovered at the last minute. Early, honest communication gives everyone room to solve things, and it keeps your rate lock and closing date protected whenever possible.
And once you close, the rules relax. You can buy furniture, open the store card, and finance the new appliances, ideally with the same care you've shown throughout the process.
The takeaway
Treat escrow like a quiet period for your finances. Keep your money still, your credit untouched, and your phone handy. Whenever you're unsure, call your loan officer first. The best escrows are the boring ones.
