The problem you're describing is pretty much universal, and it usually comes down to the tension you're pulling the thread with while you sew. If you pull too hard you get visible puckering, if you don't pull enough the hem stays loose and wavy. What saved me was slowing way down and making small, even stitches, running the needle inside the fold of the fabric for just one or two threads at a time, alternating between the sweater and the folded edge, without ever skipping any sections of the knit. A practical tip: before you start on the whole sweater, try doing a centimeter of hem on a scrap piece of the same yarn, that way you get the right rhythm and the right tension without worrying about ruining two months of work. Change your needle if you feel it's not gliding smoothly through the fabric, because a worn or slightly bent one makes everything harder and more noticeable.