Buying a home in Tennessee

Tennessee's effective property-tax rate is about 0.462%of a home's value per year, lower than the U.S. average of 0.888%. On a $500,000 home that's roughly $2,310 a year.

Full Tennessee property-tax guide →

Tennessee is a title/escrow state (no attorney required), and Tennessee levies a real-estate transfer/deed tax of about 0.37% — customarily buyer-paid. $0.37/$100, uniform; buyer (grantee, statutory). T.C.A. §67-4-409. On a $400,000 home, estimated closing costs run about $8,438–$11,738 on top of your down payment.

Full Tennessee closing-costs guide →

Tennessee runs a housing finance agency with first-time-buyer help: down-payment assistance, below-market first mortgages, and mortgage tax credits.

See first-time buyer programs in Tennessee →

What you can afford depends on your income, debts, and down payment, not just the home price. Tennessee's property taxes above feed straight into the monthly payment lenders measure against your income.

Enter your numbers once and see your real affordability range, debt-to-income, and rent-vs-buy break-even for Tennessee:

Home Buying Steps walks you through the whole process, from checking if you're ready to getting pre-approved to closing day, one clear step at a time, tailored to Tennessee where the rules differ.

• 1. Are you ready? — budget, credit, rent vs. buy
• 2. Get your finances in order — pre-approval
• 5. Making an offer — earnest money & contingencies
• 10. Closing day — every cost, line by line