Mortgage Mistakes Knoxville First-Time Buyers Often Make
Applying for your first mortgage can be a stressful, frustrating, and at times, overwhelming. But, if your like most first-time buyers, you’ll probably need to get a mortgage in order to buy your first Knoxville home.
There are many times, though, where first-time buyers make some rookie mistakes when they get their first mortgage. In this post, we’ll cover mortgage mistakes Knoxville first-time buyers often make.
You May Not Need A Huge Down Payment
In order to qualify for a mortgage, you won’t need a huge down payment.
There are many different types of loan options that could help you buy your first Knoxville home. There are no down payment options as well as options that allow you to put as little as 3% down on your first home.
Even when you don’t do a large down payment, you won’t necessarily be stuck paying a ton in mortgage insurance.
Your Mortgage Company Matters More Than You Think
Mortgage companies are not all the same. There can be a very large difference between one mortgage company and another. Oftentimes, when borrowers realize this big difference until too late, when it comes time to close and their mortgage company isn’t ready.
When it comes to selecting a mortgage company, be sure to do your homework. While fees and interest rate are very important, you’ll also want to make sure that a mortgage company is competent at their job.
Will they be able to close on time? Will they be able to answer all your questions and concerns? Will they be able to process your loan application in a timely manner? Be sure to ask your realtor if they’ve worked with that particular experience and what their experience was.
Taking All The Paperwork Personally
Getting a mortgage requires a lot of paperwork. It’s just part of the process. It’s nothing against you personally.
There are many times where buyers can get irritated with having to provide so much paperwork. Sure, it can be frustrating to have to provide multiple paychecks and updated bank information. But, it’s just part of the process.
Even when you have good income and credit, a mortgage company may need to verify where certain funds have come from or they may need more information about your income. They’re just trying to do their job, so don’t take it as a personal attack. It’s just part of the process.
Pre-Approval Doesn’t Guarantee Loan Approval
Contrary to what you may believe, a pre-approval doesn’t ultimately guarantee final loan approval. From the second you apply for the loan, your finances, credit score, and employment all matter. Do not make any large changes during that time without talking with your loan officer.
There have been times where a buyer changes jobs only to find out that they’re not able to qualify with their new job. For example, if a buyer goes from salary to commission, they may be making more money, but with the change in income they’d be require to show two years worth of tax returns in order to be approved for the loan.
Before making any changes to income, asset, or employment always talk with your loan officer. During the time you apply for your loan, you’ll be under scrutiny until they day you close. It’s not over until you sign the final closing paperwork.
Buying your first Knoxville home is an exciting and overwhelming experience. If you’re like most first-time buyers, you may not be sure where to start. If there is anything we can do to help you in your home search, please do not hesitate to contact us. We’ve helped countless homeowners buy their first home and we’d love to do the same for you. Rick can be reached at 865-696-9002 or via email at Rick@KnoxvilleHomeTeam.Com. Kati can be reached at 865-696-1888 or via email at Kati@KnoxvilleHomeTeam.Com.
Are you ready to start your home search? Visit our home search page to get started today. Or, be sure to keep up with our Knoxville First Time Home Buyer’s Blog to keep up with the latest information about buying your first home.