Over the holiday weekend, I had the opportunity to host several area tours around Marin County with new buyers relocating to the area. As we explored neighborhoods and homes, we also talked about the importance of getting pre-approved—and the common (and often costly) mistakes buyers can make, both before and after going into contract. These conversations reminded me how easy it is to overlook the small things that can have a big impact on your purchase. So I thought I’d share a few key reminders to help keep your escrow smooth and stress-free.
Once your offer is accepted and you're officially in escrow, it’s natural to feel excited—and even a little relieved. But the finish line isn't quite here yet. The escrow period is one of the most important stages in the buying process, and what you do (or don’t do) during this time can directly affect whether or not you successfully close on your new home.
If you're new to the home buying process and not quite sure what “escrow” means, you’re not alone. Escrow is the period between when a buyer and seller agree on an offer and when the property officially changes hands. During that time, a neutral third party—usually an escrow officer or company—holds funds, documents, and instructions to make sure everything is handled properly on both sides before the sale is finalized.
Here are three things every buyer should never do during escrow.
1. Don’t Make Major Financial Changes
It might be tempting to celebrate your new home by buying furniture, a new car, or opening a credit card to get a discount on a new TV for the living room. But hold off until after the deal closes.
Why it matters:
Your lender will likely pull your credit again before closing. Any big purchases, new lines of credit, or job changes can impact your debt-to-income ratio and jeopardize your loan approval—even if you’ve already been pre-approved.
Tip:
Avoid applying for credit cards, co-signing on loans, or making large cash deposits that aren’t fully documented. Stay financially stable until escrow is closed.
2. Don’t Miss Deadlines or Go Silent
Escrow is full of important milestones: inspections, disclosures, loan documents, and more. Missing even one deadline can create unnecessary friction.
Why it matters:
Delays can result in penalties, missing contingency deadlines, or worse—the seller could cancel the contract and move on to a backup offer.
Tip:
Stay responsive. If your agent, lender, or escrow officer requests something, reply quickly. Keep communication flowing and make yourself available to schedule/attend inspections, sign documents or answer questions.
3. Don’t Move Money Around Without a Paper Trail
Your lender needs a clear view of your financial picture, including the source of your down payment and closing costs.
Why it matters:
Large or unexplained transfers between bank accounts, undocumented “gift” funds, or sudden cash deposits can trigger underwriting delays or cause the lender to question the legitimacy of the funds.
Tip:
Consult with your lender before transferring any funds. If you’re receiving gift funds, ask for guidance on how to properly document funds.
The Bottom Line
Escrow is not the time to make big changes. The best thing you can do is to remain fiscally steady, transparent, and be responsive. A smooth escrow means fewer surprises, less stress, and a faster path to getting the keys to your new home.
If you’re thinking about buying in Marin—or just want a refresher before you start touring—I’m here to guide you every step of the way.
