When you’re in the process of applying for a mortgage to buy a Knoxville home for sale, your finances and credit will be examined very closely. Here are 3 things you shouldn’t do when applying for a mortgage to buy a Knoxville home for sale.
Making Big Purchases/ Credit Changes
In order to be approved for a mortgage, your mortgage company will want to see that your finances are secure to ensure they will be paid back. While applying for a mortgage, it is important that you don’t make any significant purchases or make any changes to your credit. A big purchase could raise questions about your spending habits and changes to your credit could change your ability to get a loan. It is important that you don’t open any new credit cards or lines of credit when applying for a loan.
Making Big Lifestyle Changes
When applying for a mortgage, it is not a good idea to make any significant lifestyle changes. Your lender will want to see that you have a solid job with regular dependable income. This means it is not a good idea to quit your job or change job during the process of buying a Knoxville home. If for some reason this happens during the process, it is extremely important to contact your lender anytime there is a significant change to your income.
Moving Money Around / Making Significant Changes To Finances
When applying for a mortgage, you will need to provide bank statements to prove that you have enough money for a down payment. They will want to make sure that the funds for the down payment have “seasoned,” meaning that they’ve sat in your bank account for some time. If funds for your down payment are being gifted, be sure to check with your lender as to how it should be handled.
Are you thinking about buying a Knoxville home this year? If there is anyway Knoxville Home Team can assist you, please let us know, you can give Rick at call at 865-696-9002 or send an email to [email protected]. Kati can be contacted at 865-392-5880 or via email at [email protected]. Also, be sure to check out our Knoxville Home Search Page to see what homes are for sale in the West Knoxville area.