Home buying November 15, 2023

7 Steps to Homeownership

Buying a house in Tennessee in 2023 can be tricky due to the unpredictable housing market. Whether you’re a first-time buyer or aiming for a strategic investment, successfully navigating this market requires knowledge and careful planning. In this blog, we’ll provide step-by-step instructions to make the process easier for you.

Key Takeaways:

  • Benefit from Declining Prices: Take advantage of lower home prices in the current market.
  • Stabilizing Mortgage Rates: Expect 30-year fixed rates to stabilize between 6% to 6.5% in 2023.
  • Maintain a Healthy Credit Score: Aim for a score of 670 or higher for a better interest rate.
  • Plan Your Finances: Allocate 20% for a down payment and 2-5% for closing costs.

7 Steps to Buying a House in Tennessee:

Step 1: Check Your Financial Health

  • Use home affordability calculators to understand your financial readiness.
  • Check your credit score, ideally aiming for 670 or higher.
  • Maintain a steady employment history and review your Debt to debt-to-income ratio (DTI).

Step 2: Plan Your Down Payment and Closing Costs

  • Plan a down payment of around 20% of the home’s sale price.
  • Budget 2-5% of the total purchase price for closing costs.

Step 3: Get the Preapproval Letter for Your Mortgage

  • Understand types of home loans (Conventional, FHA, VA, USDA).
  • Apply for a pre-approval letter to determine how much you can borrow.

Step 4: Start Your Home Search

  • Consider using Tennessee For Sale By Owner websites.
  • See homes in person, keep your schedule open, and attend open houses.

Step 5: Make an Offer

  • Make your offer appealing by including the offer price, preapproval letter, and proof of funds.
  • Be aware of home-buying contingencies and be prepared for counteroffers.

Step 6: Schedule a Home Inspection & Appraisal

  • Hire a Tennessee home inspector to identify issues.
  • Get the property appraised to determine its market value.

Step 7: Close the Sale

  • After meeting all contingencies, close the deal by paying closing costs and signing paperwork.

Tips for Buying a House in Tennessee:

  • Prioritize early savings for one-time and recurring costs.
  • Maintain a healthy credit score by paying bills on time.
  • Organize loan paperwork to streamline the process.
  • Explore first-time homebuyer programs for assistance.

Bottom Line: Now is an opportune time to buy a house in Tennessee with declining prices and stabilizing mortgage rates. Plan your finances in advance and follow these tips to confidently embark on your journey to homeownership.



Click here to view my buyer’s presentation

Visit my website