If you're in the process of buying a home, congratulations! You're about to embark on one of the most exciting journey's of your life. Owning a home is a huge accomplishment and it's something that you should be very proud of. That being said, there are a few things you need to know before you sign on the dotted line. One thing in particular that you need to be aware of is making any large purchases during escrow. Here's why...

When you're in escrow, your loan is being processed and your credit report is being pulled. Your loan officer will take a look at your credit report and they will use that information to determine how much of a loan you qualify for. If everything looks good, then you'll be well on your way to closing on your new home. However, if there are any red flags, then your loan could be denied or you may not qualify for as much money as you originally thought.

One of the biggest red flags that loan officers look for is large purchases made right before or during the escrow process. These purchases can include things like cars, boats, jewelry, or any other big-ticket items.Making any of these purchases can put a dent in your savings and it can also raise some serious questions with your loan officer. They may wonder how you're going to pay for these items and they may think that you're overextending yourself financially. As a result, they may not approve your loan or they may only approve you for a smaller amount than you originally applied for.

So, what does this all mean? It means that you need to be very careful about making any large purchases during the escrow process because it can negatively impact your ability to buy the home. If possible, try to wait until after escrow has closed before making any big purchases. And if you absolutely must make a purchase during this time, make sure to talk to your loan officer first so that they're aware of what's going on and so they can help guide you through the process.