How to Get a Home Mortgage in Tennessee

Choosing the right mortgage is an important process. The decisions you make now will affect the home you will be paying for and living in for possibly the next 30 years. Getting a Tennessee home mortgage loan can be much easier if you follow these steps.

Instructions

Difficulty: Easy

1. Request a current credit report and correct any errors before you apply for any mortgages.
2. Contact the Tennessee Housing Development Agency and the Home Program of Tennessee for listings of programs targeting specific people and situations. Tennessee and the federal government have created programs to assist seniors, veterans, rural home buyers, the disabled, first-time and low-income homebuyers.
3. Visit these government sites for further info on home buying programs:
   • Tennessee Homeownership Overview
   • USDA Tennessee Rural Development programs
   • Tennessee Homeownership Assistance programs
4. Examine the loans and rates of traditional lenders like banks and credit unions but also include mortgage brokers and online lenders. The more options that you give yourself, the more likely you are to find the best mortgage for you.
5. Get yourself pre-approved from your chosen lender before you contact a real estate agent. Many agents will not take your seriously if you’re not pre-approved.
6. Find a real estate agent with lasting experience in the area and a good reputation. Establishing a good working relationship is key to finding the right home for you.
7. Start home shopping on your own and with your agent. Look for features in a home that you need now and may in the future.
8. When you’ve found the right house, place an offer and if it is accepted, complete your loan and pay any associated fees.

Tips & Warnings

• Take your time when looking for the right home and shopping for the right loan. Your decision will have a large impact on your lifestyle.
• Having your prospective home professionally inspected before you buy is an additional cost but it can save you much more if problems exist.
• If you’re unsure about the mortgage contract or any of the terms in it, have an attorney inspect it or ask for clarification. Know before you sign.
• Only dishonest lenders will ask for a fee to apply for a loan. If they want money up front, walk away.
• Make sure that the home title is clear of any liens before you close on the purchase.
• Beware of predatory lenders. Predatory lenders are those lenders that intentionally coerce consumers into contractual loans with unusually high payment terms and interest rates, often directed at uninformed borrowers or those with poor credit.