"Everybody Deserves a Key."
Everything you need to buy your first home in Middle Tennessee, from credit score to closing day. Real 2026 numbers. Real programs. Real talk from a Smyrna mortgage advisor with 25 years at the table.
The financial and personal case for owning your home
"Everybody Deserves a Key." Frank Burks II, The Burks Lending Group
Homeownership provides security, stability, and a sense of achievement that renting just can't match. Many homeowners report feelings of pride, gratitude, and emotional stability from owning their home. And with the rise of remote work, having a stable, comfortable home workspace adds even more value to the equation.
Every mortgage payment builds ownership in an asset that belongs to YOU. Renters build zero equity no matter how long they stay.
Home values have historically increased over time. Buy now and your home's value grows while your mortgage balance shrinks.
A fixed-rate mortgage locks in your payment for decades. Rents increase every year with no ceiling. No surprises.
Mortgage interest and property taxes may be deductible. Consult your tax advisor for details specific to your situation.
A paid-off home is one of the most powerful assets you can pass to your children. Homeownership builds family wealth across generations.
Stability, belonging, and pride in your neighborhood. Homeowners invest in their communities in ways renters simply can't.
I won't sugarcoat it. The 30-year fixed averaged 7.03% on September 24, 2026, the first time it crossed 7% since January 2025. Nobody can promise you where rates go next, and anyone who says they know for sure is selling something.
Here's what the headlines leave out. You can change your rate later with a refinance. You can't change the price you paid. And right now, prices in Rutherford County are giving a little: the median dipped 5% to $450,000 in August 2026, and homes are taking longer to sell. That means sellers are paying closing costs and rate buydowns again. When rates fall, buyers flood back in and those concessions disappear.
| What | Number | Why It Matters |
|---|---|---|
| Rutherford County median | $450,000 (Aug 2026) | Down 5%. Smyrna, La Vergne, and Murfreesboro buyers have room to negotiate. |
| Davidson County median | $532,500 (Aug 2026) | Nashville proper still holds firm. The counties around it are where first-time buyers find value. |
| 30-year fixed average | 7.03% (Sept 24, 2026) | National average. FHA, VA, and USDA often price differently. |
| 2026 FHA loan limit | $694,450 (Nashville metro) | Most first-time buyers fit well under it. |
| State income tax on wages | $0 | Tennessee doesn't tax your paycheck, so more of it goes toward your home. |
Sources: Freddie Mac PMMS; Middle Tennessee MLS market reports; HUD and FHFA 2026 loan limits. Numbers change. Call for today's.
$111,000 paid over five years. Equity built: $0. Next lease renewal: whatever the landlord decides.
Principal and interest about $2,286/month at 7%, plus mortgage insurance, taxes, and insurance. Loan paid down about $20,000 in five years, plus any appreciation. At just 2% a year, that's about $36,000 more in value.
Illustration only: 3.5% down, 7.00% rate, 30-year fixed. Your numbers will differ, and appreciation is never guaranteed. That's exactly why we run yours.
💡 Real Talk: Every month you rent is a month you're paying someone else's mortgage. Your payment history builds their wealth, not yours. Let's change that. Call 615.364.5700 for a free eligibility review.
What lenders actually look at, and what surprises most buyers
Most people wait years longer than they need to because nobody sat down and walked them through the real requirements. Here is the honest breakdown of what it takes to buy a home today, and why you may be closer than you think.
| Pre-Qualification | Pre-Approval | |
|---|---|---|
| What it is | Estimate based on self-reported info | Verified review of credit, income & assets |
| Credit pull | Usually no hard pull | Hard credit pull required |
| Strength with sellers | Conversation starter | Serious buyer signal |
| Frank recommends | Good first step | Do this BEFORE you shop |
Build your homebuying team first. Frank Burks II · 615.364.5700 · theburkslendinggroup.com
Know your score. Identify what needs work. Make a plan before you apply.
More programs exist than you think. You may need far less than you expect.
Lock in your budget. Get your letter. Shop with confidence and credibility.
Tour homes with your buyer's agent. Know your non-negotiables going in.
Your agent drafts it. Your pre-approval letter makes it credible. Negotiate smart.
Professionals verify condition and market value. Never skip the inspection.
Sign documents, pay costs (or have them covered), and get your keys.
💡 From My Desk: Don't assume you're not ready. Call or text 615.364.5700 for a free 10-minute eligibility review before you decide homeownership isn't possible for you.
Reports, scores, protecting and repairing your credit history
Your credit standing is the single most important factor in your mortgage approval AND your interest rate. Understanding how it works (and how to improve it) is one of the most valuable things you can do before you apply.
The three major credit bureaus, Experian, Equifax, and TransUnion, each compile their own report:
⚠️ Important: Your credit report does NOT include race, religion, medical history, lifestyle, political preference, or criminal record. If anyone implies otherwise, that's a red flag.
| Factor | Weight | What It Means |
|---|---|---|
| Payment History | 35% | On-time payments are the biggest single factor. One late payment can drop your score significantly. |
| Credit Utilization | 30% | Balances vs. limits. Keep card balances below 30% of limit. Below 10% is the sweet spot. |
| Length of History | 15% | How long accounts have been open. Older accounts help your average age, don't close them. |
| Credit Mix | 10% | Variety of account types, cards, loans, mortgage. Diversity helps your score. |
| New Credit | 10% | Recent applications and new accounts. Too many hard inquiries in a short period hurts your score. |
Bad credit is not a life sentence. Once you start making regular, on-time payments and build positive history, your score will improve. If you need help building a credit improvement plan, call me directly. That conversation costs nothing.
Build the financial foundation that gets you to the closing table
A budget is simply a plan that lays out your income and expenses as precisely as possible. It helps you build savings, use credit wisely, and meet your goals, including your down payment. Without one, most people have no idea where their money actually goes.
| Income Type | Documents Needed |
|---|---|
| W-2 Employee | Last 2 years W-2s, last 30 days pay stubs, last 2 months bank statements, government-issued ID |
| Self-Employed | Last 2 years tax returns (personal & business), YTD P&L statement, last 3 months bank statements |
| 1099 / Contract | Last 2 years 1099s, last 2 years tax returns, last 3 months bank statements |
| All Borrowers | Social Security number (or ITIN), rental history if applicable, gift letter if using gift funds, bankruptcy/divorce docs if applicable |
This is the question every first-time buyer asks me, so let's answer it with real numbers. Here's a $350,000 home in Smyrna with an FHA loan.
| Item | No Help | With Seller Help + DPA |
|---|---|---|
| Down payment (3.5%) | $12,250 | $12,250 |
| Lender, title, and appraisal fees (estimate) | $6,500 | $6,500 |
| Tennessee transfer tax ($0.37 per $100) | $1,295 | $1,295 |
| Tennessee mortgage tax ($0.115 per $100) | $393 | $393 |
| Prepaids: 1 year insurance, tax escrow, interest (estimate) | $3,350 | $3,350 |
| Seller concessions (3% negotiated) | $0 | −$10,500 |
| Down payment assistance (3.5%) | $0 | −$12,250 |
| Estimated cash to close | about $23,800 | about $1,000 |
Estimates for illustration. Actual fees, taxes, insurance, and program terms vary by lender, property, and county. Your earnest money is credited toward your cash to close.
💡 Real Talk: Same house. Same buyer. The difference between $23,800 and about $1,000 is knowing which programs exist and asking the seller for help. That's why the right conversation before you start house hunting matters so much.
| Program | Down Payment | Min FICO | Notes |
|---|---|---|---|
| FHA Loan | 3.5% | 580+ | Most flexible credit requirements. Most popular first-time buyer program. |
| Conventional | 3-5% | 620+ | PMI cancellable at 20% equity. No upfront MI premium. |
| VA Loan | 0% | None | Veterans & active military only. Zero down, no PMI. |
| USDA Loan | 0% | 640+ | Rural & suburban areas. Zero down. Income limits apply. |
| DPA Programs | As little as 0% out of pocket | 580+ | Multiple programs covering your down payment. Forgivable and grant options. See Section 5. |
| ITIN Non-QM | 15% | 660+ | No SSN required, up to 85% LTV. |
💡 From My Desk: In many cases we can structure your loan so the seller covers closing costs AND a DPA program covers your down payment, meaning you could buy with little to zero out of pocket. Let's run your numbers: 615.364.5700
Every program available, and which one fits your situation
At The Burks Lending Group, empowered by NEXA Lending, I have access to 200+ lending partners, which opens the door to programs most lenders don't offer or don't even know about. Here's your complete guide to what's available right now.
| Program | FICO | Down | Best For |
|---|---|---|---|
| FHA Loan | 580+ | 3.5% | Lower credit, limited savings. Government-backed, flexible guidelines. Most popular first-time buyer program. |
| Conventional 97 | 620+ | 3% | Strong credit buyers. PMI cancellable at 20% equity. No upfront MI premium. |
| Conventional 95 | 620+ | 5% | Lower monthly MI. Great for buyers with stronger credit profiles. |
| VA Loan | None | 0% | Veterans and active military only. Zero down, no PMI, competitive rates. One of the best programs available. |
| USDA Loan | 640+ | 0% | Rural and suburban properties. Zero down. Income limits apply. Check eligibility by address. |
| DPA Programs | 580+ | 0% OOP possible | Multiple programs, each matched to your credit, income, and loan type. Forgivable and grant options. Many have no first-time buyer requirement. |
| ITIN Non-QM | 660+ | 15% | No SSN required. ITIN borrowers qualify. Up to $2M loan. Multiple income doc types. 100% gift funds OK. |
I have access to multiple down payment assistance programs through my 200+ lending partners, and they aren't one-size-fits-all. Which one fits depends on your credit score, income, loan type, and the home you're buying. Some start at lower scores than most people expect. That's why I don't hand you a list; I match you to the right one.
| Type of Help | How It Works | Good to Know |
|---|---|---|
| Forgivable | A second loan at 0% with no monthly payment that's forgiven over time | Some are forgiven after as few as 60 on-time payments |
| True Grant | Money toward your down payment that you never repay | Income limits usually apply |
| Repayable | A small second loan with a payment or a balloon | Often the most flexible on credit and income |
Assistance typically covers 2% to 5% of the price. Many programs work with FHA, some with USDA and conventional, and many don't require you to be a first-time buyer. Program terms change often, so let's check what fits you today.
Your interest rate never changes for the life of the loan. Monthly P&I stays exactly the same, year 1 through year 30. Best for: most buyers, stable income, long-term ownership plans.
Fixed for an intro period (1-10 years), then adjusts periodically. Lower initial rate, but the payment can increase. Best for: buyers who plan to sell within the fixed period.
💡 From My Desk: Don't let mortgage insurance scare you away from buying. For most buyers, the cost of PMI or MIP is far less than the equity you'd build waiting to save 20%. Let's run your actual numbers, 615.364.5700
What to look for, how agents work, and how to shop smart
Once your pre-approval is in hand, it's time to start looking. Knowing what to look for, and how to work with the right people, makes the difference between a smooth purchase and a costly mistake.
Write down everything you want. If multiple people are deciding, have each person make their own list independently first.
Compare lists and combine shared requirements into one focused, narrower list.
"If I found an amazing home that lacked this, would I still buy it?" If yes, it's a nice-to-have, not a requirement.
| Seller's Agent | Buyer's Agent | |
|---|---|---|
| Represents | The seller, period | YOU, the buyer |
| Their obligation | Best deal for the seller | Best deal for YOU |
| Written agreement | Listing agreement with the seller | Required before you tour homes (since August 2024) |
| Who pays | Seller, per the listing agreement | Negotiable. Often the seller covers it, but it's no longer automatic |
| Your move | Remember who they work for | Read your agreement and ask how their fee gets paid |
💡 From My Desk: The agent at the open house works for the SELLER, not you. Get your own buyer's agent. Since August 2024, you'll sign a written agreement before touring, and it spells out how your agent gets paid. We can structure your offer to ask the seller to cover it. I know great agents all over Middle Tennessee and I'm happy to connect you.
Contingencies, earnest money, inspection, and negotiation
You've found the home. Now comes one of the most important decisions in the entire process: your offer. Getting this right protects your money, your interests, and your ability to walk away if something goes wrong.
If you can't secure financing, you walk away and get your earnest money back. NEVER skip this one.
Right to inspect and negotiate repairs, or walk if major problems are found. Always include this.
If the home appraises below your offer price, you can renegotiate or walk. Protects you from overpaying.
Ensures the seller has clear ownership rights to sell. No hidden liens or prior claims.
A home inspection is NOT the same as an appraisal. An appraisal estimates value. An inspection examines condition. A qualified inspector covers: foundation and basement, roof and gutters, electrical systems, plumbing, HVAC, insulation, windows and doors, and structural components. Average cost: $300-$500. Time: 2-3 hours. Worth every penny every single time.
Go WITH your inspector during the inspection. Ask questions. Learn about the home's systems. Get repair estimates in real time.
⚠️ Heads Up: In competitive markets, some buyers waive inspections to win. Think carefully before doing this. Waiving could cost you tens of thousands in hidden repairs. Know the full risk before you sign.
From application to underwriting to your Commitment Letter
The mortgage process can feel overwhelming, but it is simply a series of checkpoints. A good lender walks you through every single one. That is exactly what we do at The Burks Lending Group.
Complete the loan application with your lender. Bring all income docs, bank statements, tax returns, and ID. The more organized you are, the faster it moves.
Within 3 business days, your lender issues a Loan Estimate showing estimated closing costs, interest rate, monthly payment, and loan terms. Review it carefully.
Your lender orders the property appraisal and pulls your full credit report. Your loan amount cannot exceed the appraised value.
Your processor assembles your complete file: income, assets, employment, appraisal, credit, title, and insurance. All pieces come together here.
The underwriter reviews everything and makes the final approval decision. They may issue conditional approval requiring additional documents. Respond IMMEDIATELY.
A formal promise from the lender to fund your loan. Major milestone. Review all terms carefully.
Title insurance ordered, conditions cleared, closing scheduled. Order homeowners insurance and prepare your certified check.
Every condition is met. Every document verified. You are cleared to close. Our two favorite words in the business.
| Term | Plain English Definition |
|---|---|
| Down Payment | The percentage of purchase price you pay out of pocket. Ranges from 0% (VA/USDA) to 20%+ depending on the program. |
| Mortgage Rate | The interest rate you pay to borrow money. Affects your monthly payment and total cost of the loan. |
| APR | Annual Percentage Rate, includes the interest rate PLUS lender fees. A better comparison tool than rate alone. |
| Credit Score | A 3-digit number from 300-850 representing creditworthiness. Higher is always better. |
| DTI | Debt-to-Income ratio. Total monthly debt payments divided by gross monthly income. |
| Closing Costs | Fees to complete the transaction. Typically 2-5% of loan amount. Can often be covered by seller concessions. |
| Appraisal | A licensed third-party estimate of the home's market value. Your lender won't loan more than this number. |
| Pre-Approval Letter | Your lender's written statement of your approved loan amount and terms. Your shopping credential. |
| Equity | Your home's market value minus what you owe. Grows as you pay down debt and values rise. |
| Escrow | Account held by lender to collect and pay property taxes and insurance on your behalf monthly. |
| Title Insurance | Protects your legal ownership against prior claims, liens, or errors in public records. |
| PMI / MIP | Mortgage insurance required when down payment is under 20%. Protects the lender, not you. |
Documents, costs, keys, and life as a homeowner
You toured, you offered, you waited, you inspected, you underwrote, and now you can feel those phantom keys sliding into your hand. There is one final step before you become a homeowner: the closing.
| Document | What It Does |
|---|---|
| Deed of Trust | Pledges your home as security for the loan. In Tennessee, this is what secures your mortgage (other states call it "the mortgage"). |
| The Mortgage Note | Your promise to repay the loan. Specifies rate, payment, length, and late payment penalties. |
| Closing Disclosure (CD) | Final itemized breakdown of all loan terms and closing costs. You receive this 3 days before closing, review it carefully. |
| The Deed | Legal document transferring ownership from seller to you. Any errors must be corrected before you close. |
| Title Insurance Commitment | Guarantees your title policy will be issued. Protects your legal ownership against prior claims or errors. |
Take a deep breath. Pat yourself on the back. Raise a toast. You are now officially a homeowner! 🏡
What to NEVER do after applying, and your final prep checklist
You're in the process. Your application is submitted. Your pre-approval is in hand. This is not the time to get careless. One wrong move between application and closing can derail your loan, delay your closing, or cost you your dream home.
💡 One Last Thing: You don't have to go at it alone. Today's market is competitive. The buyers who win are the ones with the right team and the right preparation. Let's build yours. 615.364.5700 · www.theburkslendinggroup.com
What first-time buyers ask me most
How assistance works and who qualifies.
Income scenarios from $50K to $150K+.
💡 My Promise: I'll tell you the truth about your numbers, even if the answer is "not yet." And if it's "not yet," I'll hand you the plan to get to "yes."
Clear to Close Starts Here. Your journey starts with one conversation. No pressure, no obligation, just real answers about what's possible for you. Call or text 615.364.5700.