Getting the Best Mortgage as a First Time Home Buyer in Tennessee
Tennessee first time home buyers have the unique opportunity to take advantage of a strong, accessible real estate market.
According to The Tennessean, the Tennessee housing market has kept a strong pace over the past few years, with low mortgage rates keeping home ownership attainable for both Millennials and Baby Boomers.
As a first time home buyer in TN, it’s important to compare multiple options before choosing the best TN first time home buyers’ program for you.
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First Time Home Buyer Programs in TN
Aside from the mountains of paperwork and lists of financial jargon, many first time home buyers in Tennessee find that money is the biggest challenge when obtaining a Tennessee mortgage.
Thankfully, there are plenty of first time home buyer programs in TN provided by the Tennessee Housing Development Agency that are meant to make home ownership accessible and affordable for Tennessee first time home buyers.
Below, you can find a list of the most common first time home buyer programs in TN, including programs offering down payment assistance in TN:
- Great Choice Home Loans—30-year, fixed-rate interest loan for Tennessee first time home buyers with a minimum credit score of 640
- Great Choice Plus—No interest, no payment second mortgage loan worth a maximum of 5 percent of the home’s purchase price
- HHF-DPA—Offers $15,000 for down payment assistance in TN when buying a home in specified zip codes
Nashville, TN
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Tennessee First Time Home Buyers with Bad Credit
One of the biggest considerations taken by mortgage lenders is a Tennessee first time home buyer’s credit score, which acts as a marker for reliability and trustworthiness.
Many young first time home buyers in Tennessee find themselves with less than ideal credit, which can certainly be a source of stress when starting the mortgage process.
Luckily, it is still possible for Tennessee first time home buyers with bad credit to get an affordable Tennessee first time home buyer loan, even if their credit score needs some work.
Mortgage lenders will typically offer a few different options for first time home buyers in Tennessee with low credit scores, including:
Larger Down Payments
As a first time home buyer in Tennessee with a lower credit score, making a larger down payment can be a great way to show mortgage lenders that you are a reliable, trustworthy borrower.
With more money invested in the home, mortgage lenders will consider the borrower to be a less risky investment.
Accept a Higher Interest Rate
Even if you have to take a higher interest rate, as a first time home buyer in TN, you can always build up your credit score and refinance your Tennessee mortgage after a few years.
Of course, there is no guarantee that mortgage rates will be lower once you’re ready, but refinancing is certainly an option for a Tennessee first time home buyer with bad credit.
Get a Co-Signer
First time home buyers in Tennessee may be able to get better rates—or even additional down payment assistance in TN—by getting a co-signer to endorse their mortgage.
This way, the bank can issue a Tennessee first time home buyer loan and know that they at least have another source of income.
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Conclusion – Getting the Best Mortgage as a First Time Home Buyer in Tennessee
Finding a great mortgage as a first time home buyer in TN may take time, but the payoff is certainly worth the effort.
As you search for the best loans for TN first time home buyers, you may want to ask yourself the following questions:
- Do low-cost TN first time home buyer loans come from banks or credit unions?
- Can I get better refinance rates from online-only lenders?
- Which lenders offer competitive terms for Tennessee first time home buyers?
Ultimately, finding the best loans for first time home buyers in Tennessee is a combination of evaluating long-term affordability and partnership.
No matter what mortgage lender you choose, it’s important to partner with a financial institution that you trust and are comfortable working with for the next few decades.
There are plenty of ways to identify the best loan provider for first time home buyers in Tennessee, including fees, quality of customer service, competitive rates, and what kind of support they provide for Tennessee first time home buyers.
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