Buying a home in Tennessee can be a long, complicated and frightening process. There are many factors to consider before buying real estate in Tennessee. Being prepared is critical. Knowledge is power when it comes to negotiating real estate including home prices and mortgage interest rates, along with additional home costs such as escrow fees, insurance, and nuisance fees that can add up to hundreds of dollars on closing day. Have a discussion with the lender about closing costs such as “cash at closing” early on.
When searching for a quality mortgage loan, it’s important to look beyond the interest rate to the true cost of the loan, both now and in the future. Read the paperwork, including the fine print. Upon closer inspection you may find that the interest rate is guaranteed for only a short period of time or that it’s subject to sharply rise in the future. Your mortgage loan may be the most important contract you’ll ever sign, and it’s essential that you understand your rights and your responsibilities.
The good news is that long-term interest rates have plunged recently to new record lows and real estate has become a buyers market. Before you set out to buy a home, compute how much you can afford, keeping in mind your current expenses, how much it will cost to own and maintain the home and how your expenses may grow or change in the future. Make sure you have enough left over to save for a rainy day. Many communities provide some sort of first time homebuyer program designed to help renters become homeowners.
Have a lender pre-approve you for a mortgage. Being pre-approved means a lender has agreed to lend you a certain amount based on your credit rating and finances. Being pre-approved puts you in a better position to look for a home since you know exactly what you can purchase. If there are competing bids, a Tennessee home seller is much more likely to select a buyer who’s pre-approved.
Choosing an real estate agent is one of the most important parts of the process. While they are very helpful, investigate the local real estate market on your own. Learn the history of homes you’re considering such as when it was last purchased and for how much. Tour the neighborhood night and day and on both a weekday and weekend day. Doing all these things will help you bid more intelligently on a home and will give you an edge when negotiating with the home seller.
Consider hiring a real estate attorney. They will look out for your needs during the home-buying process, will read the fine print and will help explain anything you don’t understand.
Once you find the home you’d like to buy, get the property inspected by a qualified professional and make your purchase contingent on satisfactory inspection results. Doing so will help you avoid serious and costly problems down the road. If there are major problems, it’s common for buyers to request repairs or credit for an amount sufficient to cover the repairs. If you’re buying a new home in Tennessee, do some research on the Internet about the home builder.