First-Time Homebuyer Guide

Before you tour a single home, get a clear picture of your financial health. Review your credit score — most conventional loans require a minimum of 620, and a score above 740 gets you the best rates.

Calculate your debt-to-income ratio (DTI). Most lenders want total debt payments (including your future mortgage) to be 43% or less of your gross monthly income.

Build your down payment savings. While 20% avoids PMI, many programs allow 3–5% down for first-time buyers.

Pre-approval is a full underwrite of your financials — income docs, tax returns, bank statements, employment verification. It's not the same as a 2-minute online pre-qualification.

In Nashville's competitive market, sellers routinely ignore offers without a strong pre-approval letter. It's your ticket to the table.

Shop at least 2–3 lenders. Rates and fees vary more than you'd expect — even a 0.25% difference on a $400K loan saves over $20,000 over 30 years.

Your agent works for you — exclusively. In Tennessee, buyer's agents are compensated by the seller, so representation typically costs you nothing out of pocket.

Look for a broker with deep local knowledge of the specific Nashville neighborhoods you're targeting. Sub-market expertise matters. The market in Belle Meade is very different from Germantown.

Ask about their transaction volume, communication style, and availability. You want someone who will pick up the phone.

Before you start touring, write down your must-haves versus nice-to-haves. Bedroom count, school district, commute time, yard — rank them honestly.

In Nashville, inventory moves fast. New listings in strong neighborhoods often go under contract within 48–72 hours. Set up MLS alerts and be ready to move.

Visit neighborhoods at different times of day and on weekends. Drive the commute yourself. Walkability, noise, and neighbors matter as much as square footage.

In a seller's market, low-ball offers get ignored. Your agent will run a Comparative Market Analysis (CMA) to determine fair market value and advise on offer strategy.

Price isn't everything. Clean terms matter: strong earnest money (1–2% of purchase price), flexible closing date, and limiting contingencies can make your offer stand out.

The inspection contingency is your safety net — don't waive it entirely. But being reasonable with what you ask the seller to repair can differentiate your offer.

Never skip the home inspection. Hire your own inspector (not one recommended by the seller). For older Nashville homes, also consider a sewer scope and a separate HVAC inspection.

Your lender will order an appraisal. If the home appraises below purchase price, you'll need to renegotiate or cover the gap — plan for this possibility.

Review HOA documents if applicable. Understand fees, rules, reserves, and pending special assessments before you're committed.

Closing typically takes 30–45 days from accepted offer. The week before closing, you'll get a Closing Disclosure (CD) — review it carefully against your Loan Estimate.

Do a final walk-through 24 hours before closing to confirm the home is in agreed-upon condition and repairs were completed.

Bring your ID and a cashier's check or wire transfer for closing costs (typically 2–5% of purchase price, separate from your down payment).