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Question: In Escrow/ New Credit

Regular Contributor

Question: In Escrow/ New Credit

Great news -- our offer was accepted and we're in escrow! Now here comes the question...

 

So our lender ran our credit and got everything they need (ran credit, etc...); the escrow closes on May 15th. There is a great 18-month no interest, no payment on new purchases for furnature that we want to take advantage of. My question, do we have to wait until we're out of escrow or can we apply for this deal knowing that the loan is already in the process of being underwritten?

Current Scores (as of 04/22/13): EQ FICO=795; TU FICO =766; EX =763

BankAmericard Cash Rewards ($20,000) | Amex Platinum (NPSL) | Amex Clear ($20,000) | Amex Blue Cash ($2,500) | Chase Freedom ($11,000) | PenFed Platinum Cash Rewards ($5,000) | Barclaycard Apple ($5,000) | Discover More ($6,500) | BankAmericard Cash Rewards [Authorized User] ($15,000)
4 REPLIES
Regular Contributor

Re: Question: In Escrow/ New Credit

It is not ok to apply for new credit until you hear clear to close from your LO/Broker.


Starting Score: EQ 564, TU 560
Current Score: EQ 724, TU 770, EX 789
Goal Score: 740


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Frequent Contributor

Re: Question: In Escrow/ New Credit

+1

I can't believe LO's and brokers aren't telling people this!

Just wait on that. Most furniture stores will have the same deal in a month or something similar. See if the furniture store can do a lay away so you can put a small amount of $ down to hold the deal you have. Then when you close finish the transaction. That's what we are doing. No credit checks or anything required.
Established Contributor

Re: Question: In Escrow/ New Credit

Our loan officer told us not to apply for anything, don't buy anything big, etc...several times. 

 

In fact, there was a document we had to sign when we applied that's basically an acknowledgement that if we drastically alter our credit situation between applying and closing, we could be jeopardizing the loan.

 

There are always sales.  And if you're closing mid-may, furniture stores will have massive Memorial Day sales going on within a few days of your settlement anyway. 

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Regular Contributor

Re: Question: In Escrow/ New Credit


foofighter74 wrote:

Our loan officer told us not to apply for anything, don't buy anything big, etc...several times. 

 

In fact, there was a document we had to sign when we applied that's basically an acknowledgement that if we drastically alter our credit situation between applying and closing, we could be jeopardizing the loan.

 

There are always sales.  And if you're closing mid-may, furniture stores will have massive Memorial Day sales going on within a few days of your settlement anyway. 


Good points. Thanks for the heads up!

Current Scores (as of 04/22/13): EQ FICO=795; TU FICO =766; EX =763

BankAmericard Cash Rewards ($20,000) | Amex Platinum (NPSL) | Amex Clear ($20,000) | Amex Blue Cash ($2,500) | Chase Freedom ($11,000) | PenFed Platinum Cash Rewards ($5,000) | Barclaycard Apple ($5,000) | Discover More ($6,500) | BankAmericard Cash Rewards [Authorized User] ($15,000)