Costs to buy a house in Tennessee | Tennessee closing costs | Tennessee house buying calculator | Homeownership costs | How to save when buying a home in Tennessee
Purchasing a home in Tennessee can be expensive. On average, you'll spend between $24,290 and $86,595 in buying costs based on the median home value of $309,460.
These aren't the only costs involved with buying a home! You also have to think about ongoing homeownership costs. These range from $1,227 to $1,489 per month.
If you're looking for a way to cut down on some of your home buying costs, we recommend working with Clever Real Estate. Clever can help you compare expert agents in your local area, no strings attached. We'll help you find a knowledgeable realtor from a well-known brokerage that can use their expertise to lower your cost burden.
Average cost to buy a house in Tennessee
Expense | Amount |
|---|---|
$3,095 to $9,284 | |
$10,831 to $61,892 | |
$2,830 to $4,245 | |
$5,873 | |
$206 | |
$206 | |
$1,250 to $4,890 | |
Total | $24,290 to $86,595 |
Buyer closing costs in Tennessee
While the other costs to buy a house in Tennessee are pretty transparent, Tennessee closing costs are a bit more nuanced. They're actually a series of smaller costs lumped together into one total. Here's a breakdown of all of the Tennessee closing costs you'll likely pay when buying a home.
Closing cost | Amount |
|---|---|
Closing fee | $309 |
Recording fee | $95 |
Title service fees | $846 |
Origination fee | $1,547 |
Underwriting fee | $600 |
Discount points | $2,476 per point |
Lender's title insurance | Typically paid by seller |
Owner's title insurance | Typically paid by seller |
Prorated property tax | Varies |
Recordation tax | Typically paid by seller |
Total | $5,873 |
Keep in mind, closing costs are often negotiable. However, to win the negotiation battle, you'll need a great agent who can work out a deal with the seller. Clever can match you with a top agent in your area that can get the seller to shoulder more of the above costs.
Contact us at Clever for top agent recommendations.
Cost to buy a house in Tennessee calculator
Ongoing costs of homeownership in Tennessee
Unfortunately, the cost to buy a house is just the beginning. After closing, you'll officially own the home and begin paying for the ongoing costs of homeownership.
Expense | Average monthly cost |
|---|---|
Mortgage (principle and interest) | $1,415 |
Homeowners insurance | $253 |
Taxes | Varies but averages $177 statewide |
Maintenance | $257 |
Utilities | $407 |
Total | $2,508 |
Note: All numbers are estimates based on state averages and a median home value of $309,460 and a down payment of 20%. | |
Besides the expenses outlined above, you'll also want to consider private mortgage insurance (PMI) and homeowner's association (HOA) fees.
- If you pay less than 20% as a down payment on your house, you'll probably have to pay PMI monthly until you get to 20% equity. For the average Tennessee homeowner, this is between $135 to $456 a month.
- Some neighborhoods have HOA fees for the care and maintenance of common areas. The national average is around $250 per month.
» MORE: The true cost of homeownership
Top ways to save money when buying a house in Tennessee
1. Look into better financing options
Paying off debts and getting your credit in the best shape possible before applying for a loan will help you get a better interest rate, which will lower your monthly payments for the life of the loan.
You can also shop around to compare lenders so you get the lowest fees and interest rates available. It may be a good idea to enlist the help of a mortgage broker if you're not sure how to go about vetting lenders.
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Get matched with a lender who can tell you how much house you can afford. To get started, where do you plan on buying?
2. Participate in home buyer programs Tennessee
The Tennessee Housing Development Agency has a number of home buyer programs that can help make buying easy. These come either in the form of low fixed-rate loans or down payment and closing cost assistance and are available to income-eligible buyers in Tennessee.
The non-profit Habitat for Humanity is also an option, as it offers low income buyers the chance at an affordable home in exchange for “sweat equity,” such as volunteering or construction-work. There are also a number of localized programs you may be eligible for — check the HUD’s website for more information.
» MORE: First-time home buyer programs everyone should know about
3. Partner with an expert agent
Having an expert agent on your side can ensure you win the negotiating battle with the seller.
Clever can help match you with a knowledgeable, hyper-local agent that knows the ins and outs of how to save you money on your local fees. And best of all, our service is totally free!