couple holds keys for their first tennessee house

Financial Planning Tips For Buying Your First Tennessee House

If you’re planning on buying your first Tennessee house, there are a few financial planning tips you would have to follow, and we at Tennessee Title Loans, Inc. will be sharing those with you today.

You most likely have a challenging journey ahead of you, but the goal is worth it – your very own home. And no matter what your financial situation looks like right now, there are ways for you to get closer to making your dream come true. 

5 Financial Planning Strategies To Buy A House

Let's look at the different strategies to use when purchasing a house.

1. Talk to a Mortgage Banker

A mortgage advisor can help you save precious time. The professional can educate you on what requirements you must meet to qualify for a mortgage and what loan type might be the most suitable option for your case.

By the way, most independent mortgage advisors are paid a commission by the lender you choose as the mortgage provider, so you might not have to pay a dollar for the conversation

2. Improve Your Credit Score

Whether you’ll get offered a mortgage and terms will depend on your credit. Though there are options for borrowers with poor scores, an excellent score might eventually help you save a small fortune on interest.

couple celebrates buying their first tennessee house

You can request a free annual report from the main credit bureaus. Once you check your current status, there are a few things you can do to improve it.

  • If you have found that the report contains mistakes, you will have to fix them
  • Try not to close existing accounts (even ancient ones), as this will affect your credit mix
  • Focus on reducing your debt-to-income ratio (the best way to do that is by paying off your debt)

3. Set A Budget

Estimate of how much you can comfortably pay for your house. You won’t find the exact monthly mortgages until you begin actively shopping, but you can develop a benchmark.

  • List out your current debt to calculate your monthly expenses
  • Determine how much you would have to spend on your future house each month (don’t forget to include any property taxes, insurance, and association fees)
  • Find out the average mortgage rates in your preferred area
  • Insert the numbers in a home affordability calculator to find out the price of a house you can afford

4. Determine The Size Of The Down Payment

Ideally, you would want to save up at least 20% of the home’s price. 

However, down payment assistance (DPA) programs are available that you might want to check out. Such programs are typically reserved for first-time homebuyers and buyers with lower to moderate incomes. 

5. Try Maintaining Your Financial Status

Lenders like to see stability in your income when making a decision. That’s why you might want to avoid critical life changes for at least a few months before actively shopping for the house

If you have recently switched jobs, made big purchases, or started a business, lenders might consider you a risk when seeking a loan. 

person holding cash and a miniature house for financial planning for first time house in tennessee

What Can You Do If You're Facing Urgent Expenses?

Let’s imagine that you have been saving for months or even years to be able to make your down payment, but then an emergency expense comes up. You certainly wouldn’t want to dive into your savings as this will set you a few steps back on your journey to buying a house. So, what options are you left with?

If you need to cover a vital expense quickly you might want to consider getting a loan. 

How Much Can You Qualify With Tennessee Title Loans, Inc.?

We at Tennessee Title Loans, Inc. offer competitive title, payday, and flex loans. 

If you own a car outright, you can opt for a title loan or a line of credit. With the former, you can qualify for up to $2,500; with a flex loan, you can get access to up to $4,000 “on demand.” 

If you need to take care of a small expense, a payday loan can be handy as you might qualify for up to $400.

Give Your Finances A Boost Today!

Following financial planning tips to buy your first Tennessee house is a worthy goal, and you wouldn’t want an economic emergency to destroy everything you worked so hard for. Don’t let an unexpected bill interfere with your plans! Take out a Tennessee Title Loans Inc. loan, handle the emergency, and follow the repayment schedule.

By the way, you can get started whenever you feel like it. Please fill out our online inquiry form, and our friendly representative will call you soon. 

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.

Emma Frost

Emma Frost is a lifestyle and finance blogger with a talent for communication and a passion for financial literacy. She uses her writing talents to explore topics that help her readers gain financial stability and growth.