After the pandemic, the housing market is improving, but home buyers have another challenge to face: rising mortgage prices. If you live in Tennessee, you will most likely know that the rate has increased to 5.56%. However, it cannot be a deterrent, even if you are a first-time buyer. A motivated buyer like you can still have more negotiation power. Local property agents can be your reliable companions whether you are looking to buy a house actively or just exploring the market. They can give you an insight into the present market condition and share tricks to navigate it successfully with excellent deals and suitable financial options.
So, get in touch with an experienced and updated real estate agent for consultation. They can find you the right match based on their deep understanding of the best pockets of the cities. Before this, let’s examine what you can do to buy your dream home.
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Down payment
It is the first payment you make toward purchasing your new house at deal closing time. The rest of the amount will come from the mortgage lender. In a place like Tennessee, you usually pay 20% of the total home value in the down payment. So, if you invest in a property worth USD $309, 460, you can expect your initial expense to be about USD $61,892. You can get some relief in this with an option like FHA and VA loan types offered by the government. Your contribution can come down from 0% to 3.5% based on what you choose. Traditional lenders can also lower your down payment requirements.
The experts inform there are a few risks involved in this approach. Your monthly payment amount will be higher, along with lifetime interest rates. Then, you may need mortgage insurance for the entire loan cycle.
Assistance programs for the down payment
Whether there is affordability or a low-income issue, you can choose from down payment assistance (DPA) resources for a second loan or a grant. However, you need to prove your eligibility. One example of such an assistance program is The Housing Fund, which can provide nearly USD $35,000 in loans to eligible homebuyers across the state. For this, you should be able to pay one percent of the house value and have an FHA-approved loan. Some more criteria can also be there. It’s better to browse through all the available options and understand their implications. Your property agent’s experience and knowledge can support you.
The market trends suggest that Tennessee homes sell within 59 days. But some months can see quicker deal closing than others. June is the peak season, with most properties remaining for sale for 50 days. During this time, you must be quick with your decision before someone else seals it. In January, you can have an easy go as homes can be available for 15 extra days than the annual average. But inspecting and appraising a home is crucial whether you have enough time. You cannot take any risk in this area. Since property agents take care of everything, you can seek advice when faced with difficulty or confusion.
