Your FREE First-Time Home Buyer Guide
First-Time Home Buyer Guide: Step-by-Step to Buying a Home in East Tennessee
1. Start With Your Budget- Not the House Search
It is tempting to begin scrolling through homes the minute you decide you want to buy, but your first step should be understanding what monthly payment is actually comfortable for you.
Your housing payment may include more than the mortgage itself. Depending on the property and your financing, your monthly costs can include principal and interest, property taxes, homeowners insurance, mortgage insurance, and homeowners association fees when applicable.
A lender can help you determine how much you may qualify to borrow, but the maximum amount you qualify for does not necessarily have to be your personal maximum.
The goal is not simply to qualify for a house. It is to purchase a home that fits comfortably into your overall financial life.
2. Get Pre-Approved Before You Start Seriously Shopping
A mortgage pre-approval is one of the most important steps for a first-time buyer.
Your lender will typically review your income, debts, assets, credit history, and available funds before determining a potential loan amount.
Once you are pre-approved, we can focus your home search on properties that make financial sense for you.
A pre-approval can also make your offer stronger because the seller can see that you have already spoken with a lender and taken meaningful steps toward obtaining financing.
If you do not already have a lender, I can connect you with lenders who regularly work with first-time buyers and Tennessee homebuyer programs.
3. You May Not Need a 20% Down Payment
One of the biggest misconceptions first-time buyers have is that they need a 20% down payment before they can buy a home.
That is not always true.
Depending on the loan program and your qualifications, you may be able to purchase with a much smaller down payment.
FHA financing may allow qualified buyers to purchase with as little as 3.5% down, and eligible USDA borrowers may qualify for financing with no down payment.
Your lender can compare the available loan programs and help determine which option makes the most sense for your financial situation.
Do not assume you cannot buy simply because you have not saved 20% of the purchase price.
4. Tennessee First-Time Buyers Should Know About THDA
Tennessee has an important resource that many first-time buyers do not know about: the Tennessee Housing Development Agency, commonly known as THDA.
THDA offers home loan programs for qualifying Tennessee buyers and may also provide down payment and closing cost assistance.
Eligibility can depend on factors such as credit score, income, purchase price, property location, and the specific loan program being used.
If you think down payment or closing costs may be keeping you from buying, it is worth speaking with a lender who is familiar with THDA programs.
The important thing is not to assume you are ineligible before asking.
5. Decide What You Really Need in Your First Home
Before we begin touring properties, I recommend separating your wish list into three categories: must-haves, would-love-to-haves, and deal breakers.
Your priorities might include the number of bedrooms, commute time, yard size, school considerations, garage space, one-level living, acreage, or proximity to Knoxville.
This becomes especially important in East Tennessee because properties can vary dramatically.
Within the same general area, you may encounter established subdivisions, new construction, rural properties, acreage, well and septic systems, city utilities, mountain properties, older homes, and homes without HOA restrictions.
Knowing your priorities makes it much easier to recognize the right property when you find it.
6. Look Beyond the Cosmetic Features
A beautifully staged kitchen can grab your attention, but the less glamorous parts of the property deserve just as much attention.
When viewing a home, I encourage first-time buyers to look beyond paint colors, flooring, and furniture.
We should also pay attention to the roof, HVAC system, foundation, windows, plumbing, electrical systems, signs of moisture, drainage, driveway condition, septic or sewer setup, and well systems when applicable.
My background in property management and construction gives me a practical perspective when walking properties with my buyers. I am not replacing a licensed home inspector, but I want my clients thinking about the entire property, not just the cosmetic features.
7. Understand What Happens When You Make an Offer
Once you find the right home, we will discuss an offer strategy.
The purchase price is only one part of an offer.
Depending on the property and market conditions, we may also need to consider earnest money, financing terms, the inspection period, the closing date, seller-paid expenses, personal property, repair requests, appraisal contingencies, and other contract terms.
A strong offer is not always the offer with the highest price. The entire package matters.
8. Do Not Skip the Home Inspection
Once your offer is accepted, one of the next major steps is usually the home inspection.
A professional home inspector evaluates accessible components of the property and helps identify potential concerns.
Depending on the property, additional inspections may also make sense, including termite or wood-destroying insect inspections, septic inspections, well-water testing, radon testing, structural evaluations, HVAC evaluations, or sewer scopes.
Not every issue uncovered during an inspection is a reason to walk away.
The goal is to understand what you are purchasing so you can make an informed decision.
9. The Appraisal and Inspection Are Not the Same Thing
First-time buyers often confuse the home inspection with the appraisal.
The inspection primarily helps you understand the physical condition of the property.
The appraisal is generally ordered by the lender to provide an opinion of the property's value and evaluate certain lender-related property requirements.
These are two different parts of the buying process, and both can be important before closing.
10. Plan for More Than the Down Payment
Even if you qualify for a low-down-payment mortgage, you should plan for other costs associated with purchasing a home.
Depending on the transaction, these may include earnest money, the home inspection, appraisal fees, closing costs, prepaid property taxes, homeowners insurance, moving expenses, utility deposits, and immediate purchases or repairs after closing.
Some loan programs, seller concessions, or assistance programs may help with certain expenses, but you should discuss the exact numbers with your lender and closing professional before making an offer.
11. Avoid Major Financial Changes Before Closing
Once you are under contract, avoid making major financial changes without speaking with your lender first.
That may include financing a vehicle, opening a new credit card, buying furniture on credit, changing jobs, moving large amounts of money between accounts, or making large undocumented deposits.
Your lender may verify your financial information again before closing.
That new furniture set can wait until you have the keys.
12. What Happens at Closing?
Before closing, you will receive documents showing the final financial details of your purchase.
Your lender and closing professional will tell you what you need to bring or arrange.
Once the required documents are signed, funds are transferred, and the transaction is completed, you officially become a homeowner.
And yes, that is when we finally get to take the “I bought my first home!” photo.