"Everybody Deserves a Key."
Everything you need to know about buying your first home in Middle Tennessee — from credit scores to closing day. Real talk. Real programs. Real results.
The financial and personal case for owning your home
"Everybody Deserves a Key." — Frank Burks, The Burks Lending Group
Homeownership provides security, stability, and a sense of achievement that renting simply cannot replicate. 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.
Mortgage rates fluctuate and always will. But here's what history tells us: home prices continue rising regardless of rate movement. Buying sooner means your home's value appreciates while you build equity — and you lock in a stable payment before prices climb higher. The longer you wait, the more your dream home costs.
💡 Frank's Truth: 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) 768-9424 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 · (615) 768-9424 · www.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.
💡 Frank's Tip: Don't assume you're not ready. Call or text (615) 768-9424 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 Frank 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 |
| 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 | 0% Out of Pocket | 580+ | Multiple programs covering your required down payment. Forgivable options available. |
| ITIN Non-QM | 15% | 660+ | No SSN required — up to 85% LTV. |
💡 Frank's Tip: 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) 768-9424
Every program available — and which one fits your situation
At The Burks Lending Group, empowered by NEXA Lending, we have access to programs that 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 | Multiple programs available covering 3.5-5% of loan amount. Forgivable options. 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. |
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 payment can increase. Best for: buyers who plan to sell within the fixed period.
💡 Frank's Tip: 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) 768-9424
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 |
| Who pays | Seller pays commission | Seller pays commission |
| Cost to you | None | None — completely free to you |
💡 Frank's Tip: The agent you meet at an open house works for the SELLER — not you. Always have your own buyer's agent representation. It costs you nothing and protects everything.
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.
⚠️ Frank's Warning: 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 |
|---|---|
| The Mortgage | Pledges your home as security for the loan. In some states called a Deed of Trust. |
| 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.
💡 Frank's Final Word: 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) 768-9424 · www.theburkslendinggroup.com
Clear to Close Starts Here. Your journey to homeownership starts with one conversation — no pressure, no obligation, just real answers about what's possible for your situation.