If you have listened to the national news at all, you know that banks have tightened their underwriting standards making it more difficult for some Knoxville home buyers to get approved for financing. The very first step you should take in buying a Knoxville home is getting pre-approved for a loan to know where you stand and what price range/payment will be comfortable for both you and the bank.
While some may think getting pre-approved in Knoxville makes your loan ready to close, think again. There are things you can do between the time you are pre-approved and the time you are ready to close that can kill your loan approval. Buyers must be very careful not to do anything that could potentially harm your credit before closing. Examples of things that have made banks deny final loan approval and ultimately kill a transaction are running up existing credit cards, applying and opening new credit cards, making large purchases with credit (such as new furniture or appliances for your upcoming closing), buying a car, etc.
You are getting ready to make probably the largest purchase of your life. Now is the time to be frugal. If you can’t hold off on the new furniture or appliances, at least wait until after you leave the closing table.
Source: “When Good Deals go Bad,” Chicago Tribune (March 16, 2012)