The Ultimate Guide to Buying a Home in Memphis, TN

If you’re in the market to buy a home in the Memphis, TN area – congratulations!
It’s an exciting time… but it can also feel overwhelming.
That’s why I want to simplify the process for you and share a few things I’ve learned after helping hundreds of families each year find homes in the Memphis area.

First, a little heartfelt advice
from me to you…

You see, many customers who come to us are focused on the wrong thing. They’re shopping around looking at rates and reading marketing promises off of mortgage websites.
The truth is that a low rate doesn’t matter if your loan never closes.
Sadly, many people get so hung up on trying to find the lowest rate that they wind up working with the wrong lender and never get what they really want – which is a home loan they feel good about!
Now that we’ve got that out of the way, here are the 3 Steps to Buying a Home in Memphis.

Step 1

Choose Your Lender BEFORE Looking for a Home

This might sound self-serving since I know you want to get out there and look at houses. But that’s putting the cart before the horse, especially here in Memphis!
Why, you might ask?
Well, Memphis is an incredibly competitive real estate market, and sellers often receive multiple offers. That means you may be competing against other buyers for the same house.
So, how do you make sure your bid is accepted?
Get pre-approved BEFORE you go looking to buy a house in Memphis, TN.! And for that, you’re going to need to choose a mortgage lender.
(Hint: If you want to save yourself a lot of time and headaches, we’ve been in business since 2001 and are ranked as a top producer nationally. Give us a call at 866-957-9770.)
Remember, getting pre-approved is NOT the same thing as getting pre-qualified!
Pre-approved means an underwriter has reviewed your file and approved your mortgage up to a certain dollar amount.
At that point, you’ve taken into account the correct taxes and realistic homeowners insurance requirements on homes in your price range. When you rely on online calculators, you might underestimate these things and that mistake can keep you from getting the home you want.
Also, before you go looking at homes, it’s important to understand that what you QUALIFY for and what you’re COMFORTABLE with are 2 totally different things!
Just because you CAN afford a certain payment on paper doesn’t mean that’s a smart financial move for your family.
Getting pre-approved ahead of time means you’ll know exactly what payment range you’ll have and have a chance to really think about if that’s a commitment you want to make each month.
Plus, once you are approved, you can Offer with Confidence and sellers will know you’re a serious buyer.

Step 2

Make Sure Your Finances Are In Order

When you buy a home, you need more than just a down payment.
Yet for some reason, everyone gets fixated on the 3%, 5% or whatever percentage of down payment they were planning on making.
Buying a home requires a down payment PLUS closing costs! And if you don’t know what your closing costs are going to be – don’t feel bad. Sometimes even the Realtor doesn’t know what they are…
Closing costs include:

  • Prepaid insurance
  • Prepaid taxes
  • Appraisal
  • Inspection fees
  • Attorney fees
  • Lender fees

Depending on the house you’re buying, the purchase contract you negotiated and the type of loan you’re getting, these closing costs can vary widely!
Remember: What you can afford, and what you are comfortable with are 2 entirely different things!

A Word About Mortgage Calculators

It’s simple enough to get a calculator to estimate the payment on a $200,000 loan with a 10% down payment at a 5% interest rate.
But that ONLY calculates the principle & interest (P&I).
What about:

  • Mortgage insurance
  • Property taxes
  • Homeowners insurance
The BEST thing you can do to calculate your payment is to talk to a lender ahead of time who can help you get a realistic estimate for the required down payment, local taxes & insurance as well as help you understand the various types of mortgage insurance which may impact your loan!
We have yet to find an online payment calculator that can tell you an accurate estimate for the homeowner’s insurance and property taxes on a home. (Even if you’re using a calculator from a site owned by a mortgage company in Memphis, TN, it may not be accurate!)

Step 3

Shop & Offer with Confidence

Once you’re pre-approved and you know EXACTLY how much cash you’ll need and what your payment range is, it’s time to go shopping.

If you don’t have a real estate agent yet, now is the time to get one!

And if you need help finding a good real estate agent in Memphis, send me a note and I’ll connect you with one of my top people.

 The real estate agent & mortgage loan you choose might vary depending on the Memphis neighborhood and type of property you’re looking for as our area is so diverse when it comes to neighborhoods & property types. After all, Memphis has everything from downtown condos to rural property and everything in between!

But no matter where you find the perfect home, when you’re pre-approved with our team, you can be confident your offer will be accepted!

Buying a Home in Memphis:

Your Comprehensive Guide

Are you considering buying a home in Memphis, Tennessee? Whether you’re a first-time homebuyer or a seasoned real estate investor, this guide will help you navigate the process effectively.

Buying a home in Memphis, Tennessee, is a significant financial decision, and being well-prepared is key to a successful homebuying journey. Memphis, known for its rich music history, vibrant culture, and diverse neighborhoods, offers a range of housing options to suit various preferences and budgets.

Before diving into the process, it’s crucial to assess your financial readiness. Take a close look at your credit score, savings, and overall financial health. Understanding your budget and financial constraints will determine the type of loan and property you can afford.

 

Buying a Home in Memphis: Your Comprehensive Guide

1. Research the Memphis Housing Market:

  • Begin by researching the Memphis housing market. Understand factors such as property values, neighborhood trends, and market conditions. Look into areas that align with your preferences and budget.

2. Determine Your Budget:

  • Calculate your budget for buying a home. Consider your down payment, monthly mortgage payments, property taxes, insurance, and maintenance costs. Getting pre-approved for a mortgage will provide a clear budget range.

3. Find a Knowledgeable Real Estate Agent:

  • A local real estate agent with expertise in the Memphis market can be invaluable. They can help you find suitable properties, negotiate offers, and guide you through the buying process.

4. Explore Mortgage Options:

  • Investigate mortgage options to determine the best fit for your financial situation. This may include conventional loans, FHA loans, VA loans (if you’re a veteran), or other specialized programs.

5. Get Pre-Approved for a Mortgage:

  • Before house hunting, get pre-approved for a mortgage. This shows sellers that you’re a serious buyer and helps you understand your price range.

6. Home Search and Viewing:

  • Begin your home search. Attend open houses and schedule viewings with your real estate agent. Take notes and pictures to help you compare properties later.

7. Make an Offer:

  • When you find a home you love, work with your real estate agent to make an offer. They will help you negotiate terms, such as price, closing date, and contingencies.

8. Home Inspection:

  • After your offer is accepted, schedule a professional home inspection. This helps identify any hidden issues or necessary repairs.

9. Appraisal:

  • Your lender will arrange for a home appraisal to ensure the property’s value aligns with the loan amount. If there’s a significant discrepancy, renegotiations may be necessary.

10. Closing Process:

  • The closing process involves signing paperwork, paying closing costs, and transferring ownership. Your real estate agent and attorney (if applicable) will guide you through this step.

11. Homeownership Responsibilities:

  • After closing, you become a homeowner. This involves maintaining the property, paying property taxes, and keeping up with homeowners’ insurance.

12. Enjoy Memphis Living:

  • Memphis offers a vibrant cultural scene, excellent barbecue, and rich music history. Explore the city’s attractions, neighborhoods, and local events.

 

Remember that the real estate market can vary, so staying informed about current Memphis real estate trends and seeking advice from local experts is essential. Enjoy your new home in Memphis, a city known for its soulful music, southern hospitality, and unique charm.

Got Questions?

We hope you’ve found this guide helpful. Our wish for you is to find the home of your dreams and to get that home without having your dreams dashed or being stressed out along the way.
If you have any questions at all about the mortgage lending process, please contact a member of my team.

FAQs: Buying a home in Memphis

What do I need to do to buy a home in Memphis?

To buy a home in Memphis, assess your budget, get mortgage pre-approval, and find a local real estate agent. Collaborate to search for homes, schedule viewings, make an offer, and negotiate. Perform due diligence with inspections and appraisals. Secure financing, insurance, and finalize closing details. On closing day, sign paperwork, provide funds, and get the keys.

How do I pick the best real estate agent in Memphis?

Picking the right Memphis real estate agent needs careful research. Get friend recommendations and explore online. Check for local expertise and credentials. Interview agents, call references, and evaluate services, fees, and teams. Ensure compatibility and trust your instincts.

What are my choices for home loans in Memphis

In Memphis, you’ve got lots of home loan choices. There are things like regular loans, FHA loans, VA loans, and more. Check them out based on your money situation and goals. Talk to different lenders to find the best one.

Are there any deals for first-time homebuyers in Memphis?

Absolutely, if you’re a first-time homebuyer in Memphis, there are some great ways to make buying your first home more doable. Look into programs like the Tennessee Housing Development Agency’s Great Choice Home Loan Program, the City of Memphis Down Payment Assistance Program, and the Shelby County Homebuyer Assistance Program. They can help you with down payments, grants, and lower interest rates

See What You Qualify For

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