5 Things Every First-Time Homebuyer Should Know

Buying your first home is one of the biggest financial decisions you will ever make — and one of the most emotional ones, too. I have walked dozens of first-time buyers through this process, and the ones who feel the most confident at closing are the ones who went in prepared. Here are five things I wish every first-time buyer knew before they started looking.

1. Get Pre-Approved Before You Start Browsing

I know it is tempting to hop on Zillow and start dreaming, but the smartest first step is a call to a lender — not a search bar. Getting pre-approved does three critical things: it tells you exactly what you can afford, it shows sellers you are a serious buyer, and it gives you leverage in a competitive market.

Pre-approval is not the same as pre-qualification. Pre-qualification is a rough estimate based on what you tell the lender. Pre-approval means they have actually pulled your credit, verified your income, and issued a conditional commitment. In the Chattanooga market, sellers take pre-approved offers far more seriously — and in multiple-offer situations, it can be the difference between getting the house and losing it.

I work with several local lenders who are fantastic with first-time buyers. Happy to make an introduction if you need one.

2. Understand ALL the Costs — Not Just the Down Payment

The purchase price is just the beginning. First-time buyers are often surprised by closing costs, which typically run 2% to 5% of the purchase price. On a $300,000 home in Chattanooga, that means $6,000 to $15,000 in additional costs on top of your down payment.

Closing costs include things like the appraisal, title insurance, attorney fees, home inspection, and lender origination fees. Then there are ongoing costs: property taxes, homeowner's insurance, HOA fees (if applicable), and maintenance. A good rule of thumb is to budget 1% to 2% of your home's value per year for maintenance and repairs.

The good news? There are programs that can help. Tennessee Housing Development Agency (THDA) offers down payment assistance for qualifying buyers, and many lenders have first-time buyer programs with lower down payment requirements. Ask your lender about FHA loans (3.5% down), USDA loans (0% down for rural areas — and parts of the Chattanooga region qualify), and conventional loans with as little as 3% down.

3. Do Not Skip the Home Inspection

I cannot stress this enough. In a hot market, some buyers are tempted to waive the inspection to make their offer more competitive. Please do not do this — especially as a first-time buyer. A home inspection costs $300 to $500 and can save you tens of thousands in unexpected repairs.

A qualified inspector will check the roof, foundation, HVAC, plumbing, electrical, and more. They will find things you would never notice on a walkthrough — like a water heater that is about to fail, hidden water damage behind walls, or an electrical panel that is a safety hazard.

The inspection report also gives you negotiating power. If significant issues come up, I can ask the seller to make repairs, reduce the price, or provide a credit at closing. It is one of the most important protections you have as a buyer.

4. Think About Your Life in Three to Five Years

Your first home does not have to be your forever home — but it should work for you for at least a few years. When you are evaluating properties, think beyond today. Are you planning to start a family? Will you need a home office? Is the commute sustainable long-term? Are the schools in the district a factor now or soon?

In the Greater Chattanooga area, you have incredible variety within a short drive. Downtown condos for young professionals, starter homes in Red Bank and Hixson, family-friendly neighborhoods on Signal Mountain, and more affordable options just across the Georgia line in Ringgold or Fort Oglethorpe. Each area has a different feel, different price points, and different lifestyle perks.

I always encourage my first-time buyers to tour multiple neighborhoods — not just multiple houses. Where you live matters just as much as the house itself.

5. Work With an Agent Who Actually Listens

This might sound self-serving, but hear me out. A good buyer's agent costs you nothing — the seller pays the commission — and the right agent will save you time, money, and stress. The wrong agent will send you 50 listings that do not match what you asked for and pressure you to make decisions before you are ready.

What you want is someone who listens first. Someone who asks about your mornings, your weekends, your deal-breakers, and your dreams — not just your budget and bedroom count. Someone who knows the neighborhoods, the school districts, and the hidden costs. Someone who will tell you when a house is overpriced or when the inspection report should make you walk away.

I built my business on referrals from past clients who felt genuinely cared for. That is the kind of experience every first-time buyer deserves, and it is what I aim to deliver every single time.

Ready to Start Looking?

If you are thinking about buying your first home in the Chattanooga area, I would love to help you get started. No pressure, no timeline — just honest guidance from someone who genuinely enjoys helping people find their place. Reach out anytime.