Summary
Have you ever dreamed of relocating to a serene city that combines modernity with a touch of tradition? If so, Nashville is the perfect place for you.
However, you can’t simply relocate to Nashville without any place to live. Knowing how to get a house is one step toward a successful relocation. The city offers a variety of housing options for buyers of every kind. However, you need to embrace yourself to face the race.
Nashville’s housing market has changed dramatically since the pandemic. The city’s current real estate market is reaching record-breaking levels, making it a popular destination for seasoned investors. Therefore, you must have the proper knowledge to buy nashville tn real estate for sale.
Therefore, this blog will examine the different aspects of buying a home in Nashville. Continue reading as we delve through this guide to help you understand everything you need to know.
Steps to Buying Your New Home in Nashville
Are you new to buying a home in Nashville? Feeling uncertain about navigating the city’s real estate market?
Here’s a step-by-step guide to help you through the home-buying process in Nashville.
Step 1: Understand Your Requirements
What Can You Afford? What’s the Price of Buying a Home in Nashville?
When one gets excited about a new home, it is often too overwhelming to avoid the same issues that later become financial challenges. First and foremost, creating a budget can help determine what one can comfortably afford.
Begin by calculating your gross monthly income and present debt obligations. Most lenders observe the 28/36 rule, which stipulates that a house payment should not exceed 28% of the gross monthly income, and total debt payments should be under 36%. House payments comprise principal, interest, homeowner’s insurance, property taxes, and HOA fees.
Multiply your gross monthly income by 28% to estimate your housing budget. This will give you the upper limit for housing costs. The 28/36 rule is helpful, but it’s just the beginning. Many other hidden costs to owning a home can quickly add up.
Step 2: Understand the Average Price of Houses in Nashville, TN
You now know how much you can afford, including insurance, taxes, and other deductions. This way, you can estimate the cost of your dream home by getting a home within a budget that fits your ideal range.
The median home price in Nashville is $465,000, an increase of 17.7% year over year. This is higher than the U.S. median sales price of $428,006, which rose 11% from last year.
The average sales price of homes in Nashville is $466,000, and the average price per square foot is $284—up 20.3% from last year. Homes in Nashville usually remain on the market for a median of 22 days. Interested in condos for sale in the Gulch, Nashville, TN? The average price for a Nashville condo is $371,248.
Where to purchase a home in Nashville? Prices differ significantly based on the property type and location. Below are median home prices by neighborhood:
| Locality | Value of Land |
|---|---|
| Bellevue | $472,500 ($251/square foot) |
| East Nashville | $585,000 ($364/square foot) |
| Green Hills | $1,015,000 ($371/square foot) |
| Music Row | $421,750 ($632/square foot) |
| Hermitage | $390,000 ($218/square foot) |
| The Gulch | $750,000 ($791/square foot) |
| Midtown | $686,000 ($659/square foot) |
| Germantown | $590,000 ($537/square foot) |
Step 3: Understand the Current State of the Nashville Market
What is the Current State of the Housing Market in Nashville, TN?
Stats suggest that Nashville ranks 16th in the US in the overpriced housing market. Home prices have skyrocketed in Nashville, resulting in many homes being overvalued by as much as 50%!
Is it time to buy a home in Nashville? The bright side is that Brentwood, Nashville houses for sale has increased by 47% in a year. So remember, competition can be fierce in the real estate market. Snap up the dream house quickly as soon as it comes up in the market with such a demand.
Step 4: Find the Ideal Mortgage and Secure Your Pre-Approval
After finalizing your realistic budget, the next stage is qualifying for and getting pre-approved for a mortgage. This is paramount as it shows the sellers that your offer is serious and gives them an understanding of the loan amount they can approve. House hunting comes after pre-approval to ensure one is looking within one’s borrowing capacity.
Knowing what is required to secure a mortgage before buying a house in Nashville, Tennessee, is reasonable. Here are the basic qualifications for purchasing a home and mortgage in Tennessee.
Down payment savings:
Most lenders in Tennessee require a 20% down payment for purchasing a home. That means $50,000 in the case of most homes. It can go as low as 0% to 3.5% with government-backed loans, such as FHA. A homebuyer education course must be completed for down payment assistance.
Income and loan qualifications:
Your monthly housing payment should generally not exceed 28% of your monthly income.
Credit score:
The minimum credit score most Tennessee lenders require is 620.
Employment history:
A stable job history, usually at least two years in the same position or field, is crucial to demonstrate your repayability.
Debt-to-income ratio:
The lending company must review how manageable your debt obligation is around the income.
Remember, several factors will determine your lender and mortgage program choice. FHA loans are a good option for first-time homebuyers in Nashville, though they have higher mortgage insurance premiums. A conventional loan may suit you better for long-term savings, assuming you have a good credit score and target lower mortgage payments.
Step 5: Explore Nashville First Buyer Programs
Are you a first-time homebuyer in Nashville? Grants and programs are available in your area to help make becoming a homeowner more accessible and budget-friendly. Here are a couple of options:
The Great Choice Home Loan Program offers buyers a 30-year fixed-rate mortgage and rates that go up and down with the market and the lender you choose.
Similarly, homeownership for the Brave offers zero-down payments to eligible veterans, active-duty service members, and surviving spouses. When used wisely, such programs can help you save money on Nashville, TN condos for sale.
Step 6: Submit Your Offer & Finalize Your Deal
Once you’ve found your ideal home, it’s time to seal the deal by submitting your offer. Your agent will help you review the prices and create a competitive strategy with the following:
- Reducing contingencies
- Starting with your best price
- Making an as-is offer
- Offering a rent-back clause
Additionally, your agent might help you negotiate the seller’s counteroffer and finalize the deal on your behalf.
Simplify Buying a House in Nashville Easy with a Trusted Real Estate Agent
A real estate agent will help you find the perfect neighborhood, show available homes, negotiate on your behalf, and guide you through many other aspects.
Interview them and share your specific needs and situation to select the ideal real estate brokers in Nashville, TN. Remember, they are not the right fit unless you feel they truly understand your goals and communicate effectively with you. All the best!
