If you’re in the process of buying a West Knoxville home, more than likely you’re using some sort of financing to buy a home. Even with stellar credit, your finances and credit will be scrutinized while you apply for a loan, which is why it is important to not make any large financial moves when buying a West Knoxville home. If you’re in the process of buying a West Knoxville home, here are 5 big financial moves to avoid when buying a home.
Keep Your Day Job
One big thing lenders like to see is stable income, which is why it its important not to make any big job changes prior to buying a home. Stable income shows lenders you’re less likely to default on a loan.
Avoid Big Purchases
In the time prior to buying a West Knoxville home, it can be very important to avoid any big purchases. Buying a car or any other big purchase that requires financing can increase your debt-to-income ratio, which could cause you issues when buying a West Knoxville home.
Don’t Apply For Another Credit Card
New credit inquiries can ding away at your credit, which can hurt your odds of being approved for new loan. In addition, it can also worry lenders that you are looking for increased credit while buying a home.
Make Your Payments Time
Obviously, when applying for a loan to buy a West Knoxville home, payment history is important. Be sure in all the chaos of applying for a loan you don’t miss any payments. One late payment can raise questions with your lender.
Don’t Make Big Financial Changes
Like your employment, your lender wants to see that your income in stable. With your finances, your lender want to see your bank account balances have remained stable and that you haven’t come across large sums of money recently. It can also be important to stay with the same bank so that a lender can fully see your financial history.
Are you looking to buy a West Knoxville home this year? If so, please let us know if there is anyway we can assist you with your home search. You can contact Rick at 865-696-9002 or via email at [email protected]. You can contact Kati at 865-392-5880 or via email at [email protected]. Also, be sure to check out our West Knoxville Home Search Page to see what homes are for sale in the Farragut area.