Expenses First-Time Home Buyers Need to Save For in Nashville

Buying a first home in Nashville or Middle Tennessee is exciting. It also takes money beyond the sale price. Know the common expenses before you shop.

Down payment

The down payment is usually the biggest upfront cost. Conventional loans often start around 3% down, but many people put 10% to 20% to lower monthly payments and avoid private mortgage insurance. FHA loans allow lower down payments, and VA or USDA loans offer little or no down payment if you qualify.

Think about your long term plans. If you plan to stay in Brentwood or Franklin for many years, a larger down payment can save money over time. If you are buying in Mt. Juliet or Gallatin and expect to move sooner, lower down options may fit better.

Closing costs and cash to close

Closing costs cover appraisal fees, title insurance, lender fees, and prepaid items like property taxes and homeowners insurance. In Tennessee expect roughly 2% to 6% of the loan amount, though it varies by transaction.

You will get a Closing Disclosure a few days before closing. Review it. It lists exactly what you owe at closing, and it shows any seller credits or lender fees paid for you.

Repairs and maintenance

Once you own the house, you pay for everything. Budget for routine maintenance like HVAC service, gutter cleaning, and lawn care. Set aside a repair fund for unexpected issues like a failing water heater or roof repairs.

Older homes near historic neighborhoods in Nashville may need more upkeep. A thorough home inspection helps you estimate near term repairs before you buy.

Furnishings, appliances, and moving

Moving costs add up. Hire a mover or rent a truck, and include packing supplies and time off work. If your new home needs appliances or new furniture, those are one-time but often pricey expenses.

Shop local options in Murfreesboro or Smyrna, and consider refurbished items to stretch your budget. Plan purchases over a few months rather than buying everything at once.

HOA dues and neighborhood fees

If your home is in a homeowners association, you will pay monthly or annual dues. Fees can range from modest amounts to several hundred dollars a month for communities with pools and landscaping.

HOA rules also matter. Read the covenants before you buy so you know what is allowed and what costs might come as special assessments.

If you want help estimating what you need to save for a Nashville area home, call or text Keith Goeringer at 615-955-0461 or visit keithgo.com. Keith has helped thousands of Middle Tennessee families and can walk you through the numbers.

Frequently Asked Questions