If you’re using some sort of financing to buy a West Knoxville home for sale, your finances will be under scrutiny until closing papers are signed. Just because you have great credit and stellar finances, doesn’t guarantee a lender will give final approval to proceed with closing. If you’re in the process of buying a West Knoxville home for sale, be sure to avoid these big financial boo-boos prior to closing.
Financial Boo-Boo #1 – Making A Big Change
Don’t change jobs or change banks prior to closing on a West Knoxville home for sale. For many buyers, this may seem odd; however, this is something that can be worrisome to lenders. Lenders like to see bank statements and financial records prior to closing, and if you change banks that can make things difficult or raise red flags. Like changing a bank, changing jobs can also be a big deal. Lenders like to see stable income.
Financial Boo-Boo #2 – Making A Big Purchase
When you’re buying a West Knoxville home for sale, avoid major purchases at all costs. It’s not a good time to buy a boat or a new car. Doing so can raise your debt-to-income ratio, which in turn be the tipping point for loan approval. Financial stability is a large part of loan approval, so be sure not to raise any questions while you’re applying for a loan.
Financial Boo-Boo #3 – Make Large Deposits
Lenders like to see that the money for your down payment has be sitting in your bank account for awhile, as they call it “seasoning” in your bank account for awhile. Making a large deposit before putting money down on a house can raise questions as to where the money came from. If you don’t have the money for a down payment or will be receiving gift funds, be sure you address how it is handled with your lender first.
Financial Boo-Boo #4 – Avoid Credit Inquiries Like The Plague
Your lender will pull your credit again prior to closing on your West Knoxville home. And, more than likely, you’ll be required to sign something stating that your debt situation is the same as when you applied for the loan. Looking for additional credit can worry lenders, so avoid applying for new credit cards until after you have closed.
Financial Boo-Boo #5 – Keep Your Credit Limit Low
Finally, be sure to keep your credit limits in check while applying for a loan. Don’t charge excessively on your credit cards while applying for a loan. It can make you appear irresponsible with money.
Are you thinking about buying or selling a West Knoxville home this year? If so, please let us know if there is anyway Knoxville Home Team can assist you in buying or selling a West Knoxville home. You can contact Rick at 865-696-9002 or via email a [email protected]. Or, you can contact Kati at 865-392-5880 or via email at [email protected].