Question 1

What is a quiet period in a real estate transaction?

Accepted Answer

A quiet period refers to the time between the mortgage application and closing during which the borrower should avoid financial changes that could affect loan approval. During this period: the borrower should NOT: open new credit accounts, make large purchases, change jobs, make large deposits without documented sources, or co-sign loans. The lender will re-verify the borrower’s financial situation before closing (credit check, employment verification, and bank statement review). Any material change can delay or kill the loan.

Question 2

How long is the quiet period in Florida real estate?

Accepted Answer

Duration: the quiet period typically runs from the date of mortgage application to the closing date (usually 30-60 days). During this time: the lender is underwriting the loan, the title search is being conducted, and the closing is being prepared. The lender may pull a "soft credit check" shortly before closing to verify no new accounts or debts have appeared. Any new debt or credit inquiry can: change the borrower’s debt-to-income ratio, lower the credit score, or trigger the lender to re-underwrite the loan.

Question 3

What can a borrower do during the quiet period?

Accepted Answer

Safe activities: continue making regular payments on existing debts, continue working at the same job, maintain bank account balances, and respond promptly to lender requests for documentation. Activities to avoid: opening new credit cards, financing furniture or appliances, making large cash deposits (without documentation), changing bank accounts, quitting or changing jobs, and lending money to others. If a change is unavoidable: notify the lender immediately and provide documentation explaining the change.

Quiet Period

Quiet Period in Real Estate Transactions

What to Avoid

Safe Activities

Duration

Related Terms

Barnes Walker Real Estate

Ready to Get Started?