Buying a new home is a huge step for anyone. The process can be difficult to understand. Although the procedure for buying a home is pretty standard, there are different laws and regulations that vary from state to state. Here’s what you need to know if you are purchasing a home in Tennessee.
Make sure you find a home that you can afford. Figure out what your FICO score is, and make sure that you are searching for a new home within your price range. You wouldn’t want to fall in love with a place only to find out later that you cannot afford it. Your FICO score is what will help lenders determine your mortgage rate. Property taxes are roughly 25% in Tennessee, so be sure to factor in that, as well as utilities and any other bills you might already have. You will need to apply for a loan. You can do it by yourself, but it’s best to hire a mortgage broker. They can prepare you for the mortgage process, and help you to get the best deal. They will also help you gather the necessary paperwork while applying for the loan.
After you have decided on a home, you will sign a contract. Then you will sit down with your agent, the seller, the seller’s agent, and an escrow agent to go over the necessary paperwork. This is when you pay a deposit. This money does not go to the seller immediately. It will be held by the escrow agent until the purchase is finalized. Be sure to have everything you need to ensure the process goes as smooth as possible. Contact your agent prior to the meeting and ask them about everything that you will need so that you’re ready when that time comes.
Once you’ve acquired a loan, you’ll need a title company to perform a title search to make sure that it’s clean, then an official closing date will be set. Prior to closing, you’ll need a final inspection to make sure you are getting what you agreed upon. At closing they will tell you the final costs, and you will need to pay any remaining balance on your deposit. Once the paperwork is signed, you will receive the keys to your new home.
The best thing to do when purchasing a new home is to make sure that you are well educated. Talk to your local escrow agent and they can equip you with the knowledge that you need to make the best decision.