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1. Do I make enough money to afford a home?
Many advisors recommend potential Knoxville home buyers use the 28/36 rule when determining whether or not they can afford a home . To put it simply, it means your mortgage should be 28% or less of your annual income. And all your debt payments should be less than 36% of your annual income.
That said, average home prices vary all across the world. So, the annual income you’ll need to afford a home in Knoxville, Tennessee will be different than what you’d need in Los Angeles, California.
2. What kind of down payment do I need as a first-time homebuyer?
One of the most challenging parts of home buying for first-time homebuyers in Knoxville is saving enough for the down payment. But luckily, potential buyers DO NOT have to put 20% down in order to be approved for a loan. Some loans require 10% down, while others require even less, like 5%, or 3.5% (or even ZERO down if you are utilizing a USDA Loan or a VA Loan.)
The moral of that story is before you buy a home in Knoxville, check to see what type of loan you can be approved for, because that can make a big difference in regards to how much you’ll need for a down payment.
3. Is my credit score high enough?
The credit score you need to purchase a home in Knoxville varies depending on the mortgage you’re applying for. But one thing is certain, as a first-time homebuyer in Knoxville, you want your credit score to be in good shape. The lower the credit score you have, the harder it will be to qualify for a loan with a reasonable down payment.
4. What kind of property is right for a first-time homebuyer?
Purchasing your first home is a big commitment. Besides considering all the many costs of owning a home, you also need to consider what kind of property is right for you and your family.
For example, condominiums require less maintenance than homes. But with so many condo association rules, you might not be able to customize your home as much as you’d like. While you can customize all you want with a single-family home, you’ll be responsible for all the maintenance and repairs – which can easily add up.
Before beginning your home search, research the many different types of properties and costs associated with them all. Pick an option that aligns with your finances. Also, utilize the expertise of a local real estate agent to help educate you on the types of properties available and what living in each of them entails.
5. How long does it usually take to buy a house in Knoxville?
There’s no denying the home buying process can be a lengthy one. Besides the time spent finding your dream home, you have to find a real estate agent, get approved for a loan, make an offer, negotiate the offer, more than likely deal with competing in a multiple offer situation, get a home inspection, negotiate the repair or compensation for the inspection items, appraisal, etc.
The amount of time it takes for each step in the home buying process varies. But typically after the contract is signed, it can take anywhere between 30 to 45 days to close. Oh, and all those steps I mentioned above… you DO NOT want to do that alone, so find a trusted local real estate agent to help guide you through the process.
Have questions? Want to get the process started to get yourself into your first home? Call/Text me, Troy Stavros with CornerStone Realty Associates today! We are helping first-time homebuyers fulfill their dream of owning their own home all the time. Let us help you!
