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East Tennessee Real Estate & Neighborhood Source

Don’t Do These Things After Applying For A Mortgage!

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Things to Avoid After Applying for a Mortgage | MyKCM

Congratulations! You’ve found a home to buy and have applied for a mortgage! You’re undoubtedly excited about the opportunity to decorate your new home, but before you make any large purchases, move your money around, or make any big-time life changes, consult your loan officer – someone who will be able to tell you how your decisions will impact your home loan.

Below is a list of Things You Shouldn’t Do After Applying for a Mortgage. Some may seem obvious, but some may not.

1. Don’t Change Jobs or the Way You Are Paid at Your Job. Your loan officer must be able to track the source and amount of your annual income. If possible, you’ll want to avoid changing from salary to commission or becoming self-employed during this time as well.

2. Don’t Deposit Cash into Your Bank Accounts. Lenders need to source your money, and cash is not really traceable. Before you deposit any amount of cash into your accounts, discuss the proper way to document your transactions with your loan officer.

3. Don’t Make Any Large Purchases Like a New Car or Furniture for Your New Home. New debt comes with it, including new monthly obligations. New obligations create new qualifications. People with new debt have higher debt to income ratios…higher ratios make for riskier loans…and sometimes qualified borrowers no longer qualify.

4. Don’t Co-Sign Other Loans for Anyone. When you co-sign, you are obligated. As we mentioned, with that obligation comes higher ratios as well. Even if you swear you will not be the one making the payments, your lender will have to count the payments against you.

5. Don’t Change Bank Accounts. Remember, lenders need to source and track assets. That task is significantly easier when there is consistency among your accounts. Before you even transfer any money, talk to your loan officer.

6. Don’t Apply for New Credit. It doesn’t matter whether it’s a new credit card or a new car. When you have your credit report run by organizations in multiple financial channels (mortgage, credit card, auto, etc.), your FICO® score will be affected. Lower credit scores can determine your interest rate and maybe even your eligibility for approval.

7. Don’t Close Any Credit Accounts. Many clients erroneously believe that having less available credit makes them less risky and more likely to be approved. Wrong. A major component of your score is your length and depth of credit history (as opposed to just your payment history) and your total usage of credit as a percentage of available credit. Closing accounts has a negative impact on both of those determinants in your score.

Bottom Line

Any blip in income, assets, or credit should be reviewed and executed in a way that ensures your home loan can still be approved. The best advice is to fully disclose and discuss your plans with your loan officer before you do anything financial in nature. They are there to guide you through the process.

Have questions or need a recommendation for an amazing loan officer? Call or text me, Troy Stavros with CornerStone Realty Associates at 865-205-6899.

House Hunting in Knoxville: What Should Seniors Know?

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Buying a home when you are older and what to think about

Choosing Knoxville for your retirement plan is a wise choice. One study, evaluating key elements like cost of living, quality of life and employability, determined that Knoxville is the number one destination for people looking to retire early.

There are many considerations seniors need to take into account when buying a home – health, budget, the ability to access care, downsizing and ability to access needed services. With these factors to keep in mind, a Knoxville Real Estate Professional has the experience needed to help you through the entire process without missing a beat.

Here are a few things you should know and discuss with your real estate agent:

Your future budget matters as much as your present budget.

In Knoxville, the median home sold price is just over $201k, which is below the national average. Even though the city may be cost-effective, affording a house requires more than just scraping together money for a down payment. You will have to review your financial situation as a whole to determine if you will be able to manage the cost of buying and owning a new home.

One budgetary concern that many seniors face is old debt. As your age and moved to a fixed income situation, you may find that managing debt payments becomes more difficult. Additionally, as health needs grow, many seniors may be shocked by the cost of care. Some steps you can take to get a sense of your finances sooner rather than later include:

  • Evaluating your eligibility for Medicare or Medicaid for your health expenses

  • Checking in on your 401k or other retirement plans to calculate your expected monthly income after you’ve stopped working

Location, location, location.

You have already settled on Knoxville for your preferred destination, but keep in mind that even within Knoxville some locations may be better than others when it comes to your lifestyle. For example, when choosing a home, it is important to keep in mind how close you are to a hospital in case you experience a medical emergency.

Luckily, Knoxville as a city has different programs and services aimed to improve the quality of life for older people, including programs that help them remain in their own homes for as long as possible. They offer a broad spectrum of health and nutrition-related services, consumer and home-safety related services, in-home services, and educational, recreational, and even volunteer opportunities for seniors.

Beyond your high-level needs, you will want to know how close your new home is to everyday conveniences. Where is the nearest library? How far away is the grocery store? Are there any parks you can walk to just to get some air? These may seem like simple questions, but having these things nearby can definitely improve the quality of life.

Accessibility and health should be major factors in a home.

You need to keep your mobility limitations or future mobility limits in mind when buying a home.

The number one mobility issue affecting seniors is falling, which can cause serious and sometimes permanent injury. It may be wise to search for a ranch-style home instead of a multi-story home to avoid accidents. Other home amenities to look for that can help keep you safe include:

  • A shower and toilet with space for grab bars or another support device in case you need to install them now or in the future

  • If you choose a multi-story home, at least one bathroom on the main level – ideally with a full bath

  • Wide hallways and doorways to make sure you can navigate your home in a wheelchair if needed

  • Outlets and switches that can be reached from a wheelchair – around 2 to 4 feet from the ground

  • At least one entry to the home that doesn’t involve steps

If you have health, mobility or accessibility issues, you have many different housing options in the Knoxville area. There are 29 assisted living facilities in Knoxville and 10 others in the nearby area. These facilities are ideal for seniors who want to maintain their independence, but may need assistance with activities of daily living.

Bottom Line:

As a senior, knowing your options, as well as the circumstances that make buying a home in older age unique, will put you in a good position to make the right choice. Your dream home may already be within your reach. Have questions or want to get the process started? Contact me, Troy Stavros with CornerStone Realty Associates at 865-999-0925 to setup a time to talk.