6 min read Nov 14, 2024

How to Buy a House in Tennessee in 2024?

31.2% of homes are selling below the listing price, up by 6.3 pt Y-O-Y in Tennessee. Also, on a median listing price of $388,900, you can get a home for $378,800. This indicates that you can have an upper hand and save thousands of dollars while buying a home.

In addition, the number of homes for sale surged by 21.8% to 39,220. Besides this, homes are spending 50 days on the market. This gives you more room to negotiate the price and get your dream home at your cost!

Find Your Dream Home 🏡

View 27,110 Homes For Sale in Tennessee

Where do you want to live?

Please enter valid address

However, it’s important to know how to make your Tennessee dream home a reality. With government-backed loans like FHA mortgages, you can enjoy a low down payment of just 3.5%.

You can also consider buying an FSBO home. It costs 23% less than traditional homes. This means on a median sale price of $388,900, you could save $89,447. That’s huge! 

Also, the buyer agent commissions have become negotiable after the NAR settlement. So, you must prepare your offer contract wisely and don’t fall prey to any litigation or risks.

Now that you know some of the key considerations, let’s explore the steps of buying a home in the Volunteer State in 2024.

How to Buy a House in Tennessee in 5 Steps

Here are five simple steps that you need to take to buy a house in Tennessee:

Step 1: Check Your Financial Health

You must evaluate your budget before you buy a house. Here’s what you need to do:

  • Check Your Credit Score: Your credit score determines how much you can borrow and the interest rates you qualify for. You can obtain a free credit report from Equifax, Experian, or TransUnion.
  • Find Your DTI Score: Lenders use the DTI score to determine your eligible mortgage amount. A DTI of 36% or lower is ideal. To calculate your DTI ratio, divide your monthly debts by your gross monthly income.
  • Determine Your Budget: You can use a mortgage calculator to determine the maximum house price that fits within your budget. Additionally, ensure you get the best deal by checking if the seller has priced the house correctly using our free house value estimator.

Step 2: Find the Right Mortgage and Plan for the Down Payment

The average down payment on a house depends on the type of mortgage you opt for. A higher down payment reduces the amount you need to borrow and lowers your monthly mortgage payments. Consider the following loan options:

Loan TypeMinimum Down PaymentBest for
Conventional Loan20% Strong credit score & steady income homebuyers
FHA Loan3.5%First-time homebuyers
VA Loan0%Veterans & eligible service members
USDA Loan0%Rural homebuyers (income limits apply)
🏡 Want an Accurate Estimate of Your Monthly Mortgage Payments?
Find out with Tennessee’s #1 Mortgage Payment Calculator. It gives you an instant amortization schedule and a detailed breakdown of all costs, including insurance and property taxes for free.💲

Step 3: Get a Mortgage Pre-approval Letter 

It’s crucial to get a mortgage pre-approval before you start house hunting in Tennessee. A pre-approval letter shows the seller that you are a serious buyer. It also helps you negotiate better in a competitive market.

Apply for Pre-Approval

Choose Your Loan Type

  • new-purchase active New Home Purchase
  • new-purchase active Mortgage Refinance
  • new-purchase active Cash-out Refinance
Please select a Loan Type first
Houzeo gives access to 140+ lenders across the U.S. Start your homebuying journey now!

Step 4: Start Your Home Search

Now that you’re financially prepared, it’s time to find your dream home! Traditionally, home buyers rely on real estate agents to navigate listings on the MLS and local inventory. But there are other ways to find a house in Tennessee:

  • Search for Listings Online: Use online platforms like Houzeo and Redfin to browse some of the best neighborhoods in Tennessee to buy a house.
  • Visit Open Houses: Attend open houses to understand different neighborhoods and property types.

    💡 Pro Tip: Search Properties Without a Realtor!

    High tech house hunting sites like Houzeo allow you to buy a house without a Realtor. With Houzeo’s mobile app, you can easily search for homes by location, mark your favorites, schedule showings, and make offers.

    📱Download the Houzeo Mobile App

Step 5: Make an Offer and Close the Deal

Once you find your dream home, it’s time to make an offer and close the deal. Here’s how:

  • Submit Your Offer: Decide on a competitive price and offer terms based on the fair market value and your budget. Then, draft a letter that includes price, terms, and contingencies. Finally, negotiate effectively to reach an agreement with the seller.
  • Schedule a Home Inspection and Appraisal: Once your offer is accepted, find a home inspector in Tennessee to uncover any issues. Your lender will arrange a home appraisal to ensure the property’s value aligns with your offer.
  • Close the Deal: Review the closing disclosure, which outlines the final loan terms and expenses. Budget for closing costs, which can be 2% to 5% of the purchase price. You can sign the paperwork and receive the keys to your new home.

👉 Buyer Closing Cost Calculator: Estimate your closing cost as a buyer in Tennessee.

Is It Smart to Buy a House in Tennessee?

Buying a house in Tennessee now is a smart move as houses are staying longer on the market and are sold below the list price. Plan your down payment and closing costs in advance to avoid falling short of cash. Likewise, maintain a healthy credit score to avoid getting rejected at the time of pre-approval.

It’s not easy to close on a house but careful planning and pre-approval can put you ahead of the competition. To further enhance your home-buying journey in Tennessee, consider using online real estate platforms like Houzeo.

Buy Your New Home in Tennessee With Houzeo

With thousands of property listings, Houzeo.com is one of the biggest property listing sites in the US. Find condos, townhouses, co-ops, and other types of homes for sale in Tennessee on Houzeo.

Find Your Dream Home 🏡

View 27,110 Homes For Sale in Tennessee

Where do you want to live?

Please enter valid address

» Need More Clarity? Read these exclusive Houzeo reviews and learn why the platform is the best in America’s competitive housing market.

Frequently Asked Questions

Is Tennessee a good place to buy a home?

Yes, Tennessee is one of the best places to buy a house in US. It has affordable housing, no state income tax, and diverse landscapes. Also, the state has a lower cost of living than many other places in the country.

What is the first step in buying a home?

The first step in buying a home is to check your financial health. This includes reviewing your credit score, calculating your debt-to-income ratio, and determining your budget.

How much is a down payment on a house in Tennessee?

The down payment on a house in Tennessee depends on the type of mortgage you choose. For a conventional loan, you have to put down 20%, whereas for FHA loans you have to put 3.5% money down.

Cross

Save $39

Only on Gold and Platinum plans

Use Coupon Code:

Copied
4.9 out of 5 Star Rated Houzeo Concierge

Need help? Call us on

(844) 448-0110