Buying a home can be exciting, but knowing all the steps in between can help the process feel much more manageable.
Whether you are a first time buyer or simply just need a refresh, here’s all you should know about buying a home in TN!
Home Buying Process
When should you start your home search? A good rule of thumb is to begin your search at least 45-60 days out. With this time you are able to fully explore your options without feeling too rushed.
Before you start touring homes, getting pre-approved is important to begin with. Your pre-approval will help determine your type of financing as well as budget. This can help you establish a realistic budget and narrow down your options to help your search stay focused.
It’s also important to have a list of your needs and wants before you start touring homes. First consider the things you need in your home, then you can start filtering in features you would like to have. If you’re buying with your husband or wife, make sure you’re on the same page to help with the process.
Once you begin touring homes, taking notes can help you later to compare them. It is important to take your time when comparing. When ranking your homes, the notes you kept in mind when touring can help remember what stood out to you and also what didn’t work out.
If you’re wanting to learn more about the first steps of the home buying process listen to
How to Buy a Home: Part 1 | When to start the home search .
Most Important Parts of Writing an Offer in Tennessee
Once you have found the home that checks all your boxes, it is time to put in an offer! An offer is more than just a price your willing to pay, here are some more important aspects to consider:
- Offer price and earnest money amount
- Financing terms — loan type, down payment and pre-approval
- Closing and possession dates
- Inspection and due diligence timelines
- Appraisal contingency — including an appraisal gap, if applicable
- Seller concessions — such as closing costs or repairs
- Personal property included or excluded
- Contingencies — such as financing or the sale of your current home
- Deadlines for acceptance and contract performance
A strong offer is more than just offering the highest price. Clear communication is just as important. Communicating with your agents can help determine the sellers priorities too, such as closing dates or if they need more time.
There are also multiple ways to make your offer sound more appealing without having to raise the price. Depending on your situation, you can increase your earnest money, pay certain seller expenses, remove home-sale or appraisal contingencies, agree not to request repairs after an inspection, or waive an inspection.
It is important to understand these terms before removing any protection from your offer because these options can involve additional risk for the buyer.
Listen to How to Buy a Home: Part 2 | Making an Offer on a Home to hear more about the process of making an offer on a home!
What to Know When You’re Under Contract
Once your offer is accepted, you’re officially under contract! Even though you are getting close to the finish line, there are still important responsibilities and deadlines you need to keep track of before closing day.
Depositing your earnest money by your deadline stated in your contract is the first important step. This helps show your seller that you are serious about purchasing the home. The money is then held in escrow and typically applied toward your down payment or closing costs. It is important to remember that if you back out of the purchase without valid reasoning, you could potentially forfeit your earnest money.
Here are some more important things to stay on top of when under contract:
- Financing: Apply for financing promptly and stay in communication with your lender throughout the process.
- Inspections: Complete inspections and submit any repair requests within the agreed-upon inspection period.
- Due diligence: Review important details such as the title, survey, HOA information, insurance and zoning.
- Homeowners insurance: Obtain coverage if required for your financing.
- Closing documents and funds: Provide any requested documents and necessary funds by the required deadlines.
- Final walk-through: Walk through the home before closing to make sure everything is as expected.
- Closing date: Be prepared to close on the agreed-upon date unless a contractual contingency allows otherwise.
Finally after all these steps are completed, you have made it one step closer to closing day and getting the keys to your new home!
Closing On Your Home
You’ve made it to the final steps of the home buying process! Before you get to officially call the home yours, there are stilllll a few more things to take care of. (I know it’s a long process, but we are almost there!)
Before closing, you’ll do a final walk through of the home. This is to make sure everything is in expected condition and that everything is as agreed upon contract.
On closing day, you’ll review and sign needed documents, complete financial details of your purchase, and OFFICIALLY take ownership of your new home!!!
It’s now the time you’ve been waiting for and you can get your keys! Remember to take care of the final steps, like transferring over utilities, updating your address, and keeping your closing documents safe.
Then all that is left to do is enjoy your new home!
Listen to HOW TO BUY A HOME | Part 3: What happens when you’re under contract and on closing day to learn more about what to expect on closing day.
Ready to Start Your Home Buying Journey?
Buying a home can feel intimidating, but by preparing yourself with what to know and expect can help the journey easier to navigate.
If you are thinking about buying a home in Knoxville, reach out to Gail Hardy today to start the journey of your home search!
If you’re not quite sure yet but what to learn more: