First-Time Buyer Roadmap
Buying your first home feels like learning a new language mid-conversation. Here's the whole process: eight steps, plain English, nothing skipped.
1 Know your numbers
Before you browse a single listing, get honest about money. Three numbers matter most:
- Credit score. Pull your free reports. Conventional loans generally want 620+; FHA loans can work down to 580 with 3.5% down. THDA programs (below) typically want 640+.
- Debt-to-income ratio (DTI). Lenders divide your monthly debts by your gross monthly income. Most programs cap this around 43–50%. Less debt = more house.
- True monthly budget. Not just the mortgage. Add property taxes, homeowner's insurance, HOA dues, and ~1% of the home's value per year for maintenance. A payment you can comfortably afford beats one you can technically qualify for.
2 Get pre-approved (not pre-qualified)
There's a critical difference: pre-qualification is a rough estimate based on what you tell a lender. Pre-approval means a lender verified your income, assets, credit, and employment, and committed to a loan amount. Sellers take pre-approved offers seriously; in a market where homes sit longer, a strong pre-approval still makes your offer stand out.
Talk to at least two lenders and compare the APR (annual percentage rate), not just the interest rate. APR includes fees, so it's the true cost comparison.
3 Explore Tennessee's buyer programs
Tennessee is one of the most first-time-buyer-friendly states in the country, thanks to THDA (Tennessee Housing Development Agency). As of fall 2026, confirm current details at thda.org:
- Great Choice Home Loan: a 30-year fixed mortgage at a below-market rate, offered through THDA-approved lenders.
- Great Choice Plus: down payment assistance as a second loan: either $6,000 forgivable at 0% interest with no monthly payment, or an amortizing option up to 5% of the price ($15,000 max).
- Homeownership for Heroes: a rate discount for veterans, active military, Guard members, and first responders, and it waives the first-time-buyer requirement.
Typical requirements: 640+ credit score, income under county limits (Nashville/Davidson is roughly $118K for a 1–2 person household), purchase price limits, a THDA-approved homebuyer education course, and a THDA-approved lender. Programs change. Verify everything at thda.org.
Beyond THDA: FHA loans (3.5% down, 580+ credit) and conventional 3%-down options are the other common first-timer paths. Your lender can run all three side by side.
4 The house hunt
Make a needs-vs-wants list before you tour: bedrooms, commute, schools, budget ceiling. Then:
- Research neighborhoods at different times of day. Drive by on a weeknight and a Saturday morning.
- Tour with intention: photos lie, floor plans don't. Check water pressure, outlets, windows, and the age of big-ticket systems (roof, HVAC, water heater).
- In today's Nashville market you have something 2021 buyers didn't: time. Use it. Tour twice. Sleep on it.
5 Making an offer & negotiating
Your agent pulls comparable sales: what similar homes actually sold for (not what they're listed at), and you build your offer: price, earnest money (commonly 1–2% of the price in Nashville), contingencies (inspection, appraisal, financing), and closing timeline.
With ~22% of Nashville listings taking price cuts, don't be shy about negotiating, especially on homes sitting 60+ days. A clean offer with pre-approval attached often beats a messy higher one.
6 Inspection & appraisal
Inspection: hire your own licensed inspector, and be there if you can. You'll learn more in two hours than in twenty online listings. Focus negotiations on safety issues and big-ticket items, not cosmetic nitpicks.
Appraisal: your lender orders it to confirm the home is worth what you're paying. If it comes in low, you can renegotiate the price, cover the gap in cash, or walk away per your contract terms.
7 Closing
In Tennessee, closings typically happen at a title company or attorney's office, 30–45 days after your offer is accepted. Expect:
- Closing costs of roughly 2–5% of the purchase price (lender fees, title insurance, prepaid taxes/insurance, recording fees).
- A Closing Disclosure at least 3 business days before closing. Compare every line to your original Loan Estimate.
- A final walkthrough to confirm the home's condition and that agreed repairs were completed.
⚠️ Wire fraud is real. Never wire closing funds based on emailed instructions alone. Call your title company at a known number to verify wiring details verbally before sending a cent.
8 Keys day 🎉
Bring a photo ID, sign the stack of paperwork, and get your keys. Then: change the locks, set up utilities in your name, meet the neighbors, and breathe. You did it.
Keep learning
Educational content only, not financial, legal, or tax advice. Loan programs, rates, and limits change; verify current details with a licensed lender and at thda.org before making decisions.
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