A Guide to Buying a Home in Tennessee for First-Time Buyers
If you’re considering buying a home for the first time, congratulations! It’s one of the most rewarding purchases you’ll ever make and comes with a huge list of benefits. At Dream Finders Homes, we make the process simple and want you to be confident in taking the leap into homeownership.
When it’s your first time buying a house in Tennessee, you’re bound to have many questions and concerns, but we’re happy to offer our expertise and guidance. As one of the most experienced home builders in Tennessee, we’ve helped many first-time homebuyers find the right home. Let’s dive into some things you should know about how to buy a home near Nashville, TN.
Financial Tips & Programs for First-Time Home Buyers in the Nashville Area
Buying your first home is an exciting milestone, and Nashville offers plenty of opportunities for first-time buyers. To navigate this journey successfully, it's essential to understand the process and prepare thoroughly. Here’s what first-time home buyers in Tennessee can expect when purchasing a home.
Financial Preparation
Before diving into the market, assess your finances. Many people begin their home search without knowing what they are approved for. Besides running the risk of not being able to afford any of the homes that you look at, it also creates unrealistic expectations of the homes that fall in your price range.
As a first-time home buyer, it is important to obtain a pre-approval letter from your lender. Besides the obvious, needing to know how much home you can afford, there are other reasons why you should get a pre-approval before starting your home search: It shows that you are a serious and qualified buyer; you’ll be ready to make an offer in a competitive market.
Understand your budget by evaluating your income, expenses, and savings. Lenders will typically require a credit score of at least 620 and recommend a debt-to-income ratio below 43%. Save for a down payment, which can range from 3% to 20% of the home's price, and set aside funds for closing costs, often 2-5% of the purchase price.
First-time homebuyers in Nashville have access to various programs that can make purchasing a home more affordable. These programs offer different benefits such as reduced down payments, favorable interest rates, and assistance specifically targeting veterans and rural areas.
- Explore local programs like the Tennessee Housing Development Agency’s (THDA) Great Choice Loan Program, which provides down payment assistance for qualifying buyers. Many first-timers also benefit from FHA or VA loans, which offer low or no down payment options.
- Homeownership for the Brave is a tailored program for veterans and military personnel that complements other loan options like VA loans. Offering reduced interest rates and potential down payment assistance, this program aims to make homeownership both attainable and sustainable for those who have served in the military.
- With the Great Choice Home Loan Program, participants take homebuyer education courses as part of the program requirements, helping them make informed decisions. The courses cover budgeting, maintaining credit, and understanding the home-buying process
Navigating the Homebuying Process
Start by getting pre-approved for a mortgage to strengthen your offer. Work with a knowledgeable agent to guide you through viewing homes, making offers, and negotiating contracts. Nashville’s competitive market requires swift decision-making, but your agent will help you stay grounded.
Buying a new construction home is a very appealing opportunity, offering the chance to pick out personalized finishes to make the house yours. There’s also the allure of living in a home that no one has lived in before. It can be a fun and rewarding experience to build or buy a new construction home, but it’s important to understand the differences from buying a re-sale home.
- Know what you’re paying for. Be aware of builder incentives, what’s included or extra, and what kind of warranty the builder offers. Factor in anywhere between $5,000-$20,000 for upgrades. Be aware of the builder’s timeline and change order fees.
- Pay attention to build times. Depending on square footage and time of year, build time can be anywhere from 6 months to a year. If you are looking at a quick move-in home, it will most likely be completed in less time. There are a lot of details that go on behind the scenes with new construction. It may look like a builder is not moving quickly, but it is important to remember that they have to have building code inspections and certain approvals before they can move forward with the building process.
Inspections and Closing
Builders will schedule walkthroughs with you and your agent prior to closing. This walkthrough typically takes place 5-7 days before closing. The builder will go over the inspection report with you, walk you through the home to show you how specific items in the home work and you will have the opportunity to note areas that need improvement. After negotiations and finalizing your loan, you’ll close on your new home and get the keys! With thorough preparation, first-time homebuyers in Nashville can feel confident and excited about finding their dream home in this thriving city.
Browse Our New Homes in the Best Communities
Now that you know a bit about buying a home in Tennessee, it’s time to find the right community to call home. One of the premier home builders in TN, Dream Finders Homes builds the best new homes in the Nashville area. A new home community allows you to take advantage of a place specifically designed to cater to a range of lifestyles, wants, and needs. You can expect to live in a tight-knit, welcoming community atmosphere with tons of amenities and access to everyday conveniences. Our communities have something for everyone.
Emberly | Thompson's Station, TN
Now Selling! Emberly is located in the premiere up-and-coming area of Middle Tennessee. Offering eight new townhome floorplans, there is definitely something to suit your needs! Emberly residents enjoy the best of both worlds with high-quality homes and low-maintenance living with unbeatable amenities such as a dog park, toddler play area, and more. Downtown Nashville is just 25 minutes away, and quaint downtown Franklin is just a 10-minute drive. Homes start at $499,990.
Fairhaven | Thompson's Station, TN
Fairhaven promises a refined living experience tucked away in a private, gated community. This neighborhood offers a serene escape, just 30 minutes from downtown Nashville and the BNA airport. It's ideal for those seeking new homes crafted with attention to detail and modern conveniences. Residents enjoy proximity to the new Williamson County Recreation Center, connected by community walking trails. The location also ensures access to some of the best schools in the area. Homes start at $1,093,990.
Fountain View | Thompson's Station, TN
Fountain View is an inviting new community that exemplifies luxury living in a master-planned setting. These semi-custom homes reflect a blend of Southern charm and historic inspiration, nestled among rolling hills and scenic landscapes. It stands out as a beacon, offering spacious residences ranging from 3,377 to over 4,300 square feet. This sought-after community is zoned for the award-winning Williamson County School District. Homes start at $1,087,990.
Featuring large, half-acre homesites, Goodwin Farms is the perfect retreat from the hustle and bustle of city life. Spacious, southern-inspired homes offer the ideal retreat surrounded by natural beauty and modern amenities. Zoned for the award-winning Williamson County School District, Goodwin Farms is a picturesque community for the entire family. This charming neighborhood is just 30 minutes from downtown Nashville, Franklin, and Cool Springs. Homes start at $669,990.
Final Opportunities! Lockwood Glen balances elegance and charm. This sought-after community offers luxurious, low-maintenance townhomes that blend classic Southern architecture with modern features. Emphasizing a life of ease and sophistication, residents enjoy access to the Residents’ Club, which includes a saltwater pool, community amphitheater, and grilling areas. Green spaces and walking trails encourage outdoor activities and neighborly engagement. Lockwood Glen is located near essential amenities and some of the top-rated schools in the region. Homes start at $749,990.
Final Opportunities! Pine Creek welcomes families to a world of elegance and serenity in a vibrant locale. It offers a compelling mix of contemporary living, marked by spacious interiors and luxurious amenities, with each home set on large, tree-lined homesites. The community integrates seamlessly into natural surroundings, with scenic walking trails and a stocked fishing pond. Just steps from the Arrington Vineyards and shopping and dining venues, Pine Creek provides rural charm and suburban convenience, within the Williamson County School District. Homes start at $940,990.
Designed to cater to a variety of lifestyles, charming Portico offers a blend of traditional Southern-style homes and modern amenities in a prime suburban setting. This inviting neighborhood offers access to local shopping and dining options and downtown Nashville, enhancing the quality of life for residents. Additionally, the community is zoned for top-rated schools, adding to its appeal to families. Brand new townhomes and limited single family homes are available! Homes start at $399,990.
Pyles Station | Chapel Hill, TN
Coming Soon! Pyles Station is a serene community perfect for those seeking the natural beauty of Middle Tennessee. Tucked in the lush trees, each homesite ranges from .75 - 2 acres, providing ample room for privacy and outdoor activities. Nearby Henry Horton State Park offers a wealth of recreational opportunities. The community is the perfect balance between peaceful living and easy access to downtown Chapel Hill. Residents enjoy both worlds - rural serenity and urban excitement. Join our VIP list today!
Wilkerson Place | Spring Hill, TN
Final Phase! Wilkerson Place offers an array of new homes that exemplify suburban living at its best. This sought-after community features a variety of plans with a blend of comfort and modern amenities, including a dog park, a community pool, and walking trails. Located near Cool Springs and downtown Franklin, the community provides easy access to shopping, dining, and recreational activities. Wilkerson Place is within the award-winning Williamson County school district, ensuring access to top-tier education. Homes start at $642,990.
Contact Dream Finders Today!
There’s a lot to learn when buying your first home. But our team is excited to help you navigate the process. Now that you’ve read our first-time home buyer’s guide, take a moment to browse our homes for sale near Nashville, and let us know if you have any questions.