With rising interest rates and less people looking to refinance, mortgage lenders in Knoxville are putting more of a focus on securing home loans and loosening some of the lending guidelines for approval as bait. According to a recent report by LendingTree, the average down payment for a 30 year fixed rate mortgage dropped 2.74% to 15.73%. Tennessee actually ranks as the 9th lowest state, as far as low down payment average, coming in at an average of 13.5% down payment.
The FHA recently removed the popular 3% down payment on their loans and has subsequently increased it to a minimum of 5%. Buyers can find many non-FHA loans through lenders offering the same 5% down. Remember, the better your credit and income are, the better your rate and terms will ultimately be, so do your homework prior to applying for a loan. There may be some actions you can take to increase your credit score, that will ultimately save you money on your loan and help you get approved.
Contact Troy Stavros with Gables & Gates, REALTORS at 865-999-0925 to discuss the home buying process or for additional advice on getting a home loan. Working in the Knoxville real estate business daily, we have many trusted mortgage lenders in Knoxville that we work with and can recommend so you don’t get stuck in a bad situation.