Sandra,
Escrow companies are not allowed to run your credit repot nor real estate agents. Your lender runs your credit report to use for loan qualification. Check with your lender to see how many times they ran your credit.

Wed Jun 4 2008, 00:40

Escrow is simply a neutral third party who holds monies collected from the principles in a transaction as a "clearing house" until the escrow is closed and funds are disbursed based upon payments of liens, lender fees, net proceeds, etc.. Escrow shall prepare necessary documents and records to facilitate clear title and to compute necessary proration’s settled once all conditions are agreed to and satisfied.

Escrow shall have no responsibility to run a customer's credit report nor do they have the means or method to (typically). Credit reporting would fall under a lender or seller requirement. Escrow may be asked to collect the credit reporting fee for a credit check run by a party to the transaction only. Lenders will run a buyer's credit at the beginning and the end of a purchase or refinance transaction to ensure that the credit rating had not been changed during the course of the escrow period.

Wed Jun 4 2008, 00:31

The escrow company is a neutral third party that holds monies, documents,etc. and reviews title reports for any liens or deeds of trust on the subject property that need to be paid off at closing. The escrow company will never run your credit, it is not their job. Credit is sometimes run on the day before funding or on the day of funding by the lender to ensure that no additional debt has been incurred by the borrower (buyer). They also sometimes call employers on the day of funding to make sure that the borrower(s) are still employed. Buyers should not acquire any new debt or make any job changes while in escrow if they are borrowing money to purchase a home. If they do, they run the risk of their loan funds been pulled on the day of funding and their loan having to go back to the underwriter to be re-written and re-approved thus delaying the closing or even denial by the lender.

Tue Jun 3 2008, 18:52

Hi there Sandra, Typically Escrow will check you creidit again before closing so its not good idea to buy expensive furniture or a new car during escrow. As outlined earlier a lender should be the only person who can run your credit not a real estate agency.
Hope this helps
Good Luck
Michael Barron
First Team Real Estate

Tue Jun 3 2008, 12:41

First of all, I don't think the Real Estate agency should have run your credit. Typically, we refer you to a lender who can pre-qualify you and they may, with your permission, run your credit. I would speak to your lender about their procedures in escrow. They may require another credit report right before closing.

Secondly, basically escrow is the 'transfer' process where the property transfers from the seller to the buyer. The escrow company is a neutral third party that handles the transaction. The process can vary from state to state, but typically they make sure all the documents are in order and the take in and disperse the money for the transaction. They should have a pamphlet that describes in more detail what to expect.

Tue Jun 3 2008, 12:36

Escrow is an non-interest bearing account where funds are kept until they are needed.

As for checking your credit, it makes no sense for the agent to do so. A buyer should meet with a mortgage loan officer (or two or three), decide whether to go with the lender, and start the paperwork needed to secure financing. Now, a lender will likely check your credit again just before closing to make sure you did not do something ill advised, like buy a new Mercedes and reduce your qualifying income below the level required, or file bankruptcy etc.

Tue Jun 3 2008, 12:33