Honest answers to the questions I hear most so you can move forward with confidence.
BUYER FAQ
Home Buyer Questions and Answers for Middle Tennessee
Buying a home is a big deal, and it's completely normal to have questions. I've put together answers to the ones I hear most often from buyers in the Wilson County and Middle Tennessee market. If you don't see your question here, reach out — I'm always happy to talk.
FINANCING & MORTGAGE
Q: How much do I need for a down payment?
A: A lot less than most people think. FHA loans require as little as 3.5% down. Conventional loans can go as low as 3%. VA loans (for eligible veterans and military) require zero down. And some areas of Wilson County — including parts of Lebanon and Watertown — qualify for USDA loans, which also require zero down payment. I'll help you figure out which loan type fits your situation best.
Q: What credit score do I need to buy a home?
A: For an FHA loan, most lenders want a score of 580 or higher. For a conventional loan, you'll typically need 620 or above. The higher your score, the better your interest rate will be. If your credit needs some work, don't be discouraged — I can connect you with a trusted local lender who can give you a personalized roadmap for getting your score where it needs to be.
Q: What is PMI and how do I avoid it?
A: PMI stands for Private Mortgage Insurance. It's required on conventional loans when your down payment is less than 20%, and it typically adds $50–$200 per month to your payment. The good news is it's not permanent — once you reach 20% equity in your home, you can request to have it removed. To avoid PMI altogether, you'd need to put 20% down, or explore loan programs like VA or USDA that don't require it.
Q: What is a debt-to-income ratio and why does it matter?
A: Your debt-to-income ratio (DTI) is the percentage of your gross monthly income that goes toward monthly debt payments. Lenders use it to assess how much additional debt — like a mortgage — you can comfortably carry. Most conventional loans require a DTI below 43%. FHA loans can sometimes allow up to 50%. To calculate yours, add up all your monthly minimum debt payments and divide by your gross monthly income.
Q: Should I use a local lender or a big national bank?
A: I always recommend working with a local lender, especially in a competitive market. Local lenders know the Middle Tennessee market, they're reachable by phone when deadlines are tight, and their pre-approval letters carry more weight with sellers and listing agents who recognize them. I have trusted local lenders I refer buyers to regularly — people I'd send my own family to. Just ask and I'm happy to make an introduction.
Q: Can I still buy a home if I'm self-employed?
A: Yes, absolutely — but the documentation requirements are more involved. Lenders will typically want two years of tax returns, profit and loss statements, and bank statements to verify your income. The key is working with a lender experienced with self-employed borrowers. I can connect you with the right people.
MAKING OFFERS & NEGOTIATING
Q: How do I know what to offer on a home?
A: I'll pull a comparative market analysis (CMA) for any home you want to make an offer on — looking at recent sales of similar homes in the same area to determine fair market value. From there, we'll factor in current market conditions, how long the home has been listed, the seller's motivation if I can find it, and your goals. I'll give you my honest recommendation and we'll craft the offer together.
Q: What is earnest money and how much should I put down?
A: Earnest money is a good-faith deposit you submit with your offer to show the seller you're serious. In Middle Tennessee, it's typically 1% of the purchase price, though some competitive situations call for more. It goes toward your down payment or closing costs at closing. If the seller accepts your offer and you back out for a reason not protected by a contingency, you could lose it — so it's important to understand the contract before you sign.
Q: What are contingencies and which ones should I include?
A: Contingencies are conditions that must be met for the sale to proceed. The most common are the inspection contingency (you can back out or negotiate repairs after the inspection), the financing contingency (protects you if your loan falls through), and the appraisal contingency (protects you if the home appraises below the purchase price). I'll advise you on which contingencies are appropriate for your specific situation and market conditions.
Q: What happens if there are multiple offers?
A: Multiple offer situations are common in Wilson County, especially in the $300K–$450K range. I'll give you a clear strategy — whether that means offering above list price, escalating your offer automatically, strengthening your terms, waiving certain contingencies, or writing a personal letter to the seller. I've helped buyers win in competitive situations without overpaying, and I'll do the same for you.
Q: Can I negotiate the price on a new construction home?
A: Yes — and most buyers don't realize this. Builders negotiate, especially on spec homes (homes already built or under construction) and toward the end of a quarter when they're trying to hit sales numbers. I can help you negotiate upgrades, closing cost contributions, lot premiums, and sometimes price reductions. Having me represent you at the builder's table costs you nothing and almost always results in a better deal.
INSPECTIONS & DUE DILIGENCE
Q: Do I really need a home inspection?
A: Absolutely — every single time, no exceptions. A professional home inspection is one of the most important things you'll do in this process. Inspectors evaluate the foundation, roof, HVAC, plumbing, electrical, and more. Even new construction homes should be inspected — builders make mistakes. The cost is typically $300–$500 and it can save you from tens of thousands of dollars in unexpected repairs.
Q: What is the due diligence period in Tennessee?
A: In Tennessee, the due diligence period is the window of time after an offer is accepted during which you can conduct inspections and investigations. It's typically 10–15 days. During this period, if you discover something you're not comfortable with, you can negotiate repairs, request a price reduction, or walk away and receive your earnest money back. After due diligence expires, backing out is more complicated — which is why we take it seriously.
Q: What happens after the inspection?
A: Once the inspection report comes in, we review it together. I'll help you identify which items are significant versus which are normal for the age and type of home. From there, you have options: request the seller make specific repairs, ask for a price reduction or closing cost credit in lieu of repairs, accept the home as-is, or in some cases walk away entirely. I'll advise you on the best approach based on the specific findings and the seller's likely response.
Q: Should I get additional inspections beyond the general one?
A: Sometimes, yes. Depending on the age and condition of the home, I may recommend a separate roof inspection, HVAC inspection, pest/termite inspection, radon test, sewer scope, or well and septic inspection. I'll flag anything in the listing or general inspection that suggests additional due diligence is warranted. In Wilson County, well and septic inspections are important for rural and semi-rural properties.
Q: What is a seller's disclosure and should I read it carefully?
A: Tennessee law requires sellers to disclose known material defects about the property. The seller's disclosure is a document where they answer detailed questions about the home's condition, history of repairs, presence of issues like water damage or pest infestations, and more. Yes — read it carefully. I'll review it with you and flag anything that raises questions or warrants follow-up.
CLOSING PROCESS & COSTS
Q: What are closing costs and how much should I budget?
A: Closing costs are fees associated with finalizing your home purchase — separate from your down payment. In Tennessee, buyers typically pay 2–4% of the purchase price in closing costs. They include lender origination fees, title insurance, title search, recording fees, prepaid homeowner's insurance, and property tax escrow. Your lender will provide a Loan Estimate early in the process so you know exactly what to expect.
Q: Can I ask the seller to pay my closing costs?
A: Yes, and it's a common negotiating strategy — especially for buyers who have the income to afford the monthly payment but limited cash on hand. Seller-paid closing costs (sometimes called seller concessions) are negotiated as part of the offer. In a competitive market, sellers are less likely to agree, but in a slower market or with a motivated seller, it's absolutely worth asking. I'll advise you on when and how to use this strategy.
Q: What happens at the closing table?
A: Closing is the final step where ownership of the home officially transfers to you. You'll sign a lot of documents — your mortgage note, the deed of trust, the settlement statement, and more. You'll also pay your down payment and closing costs (typically by wire transfer or cashier's check arranged in advance). At the end, you get the keys. The whole process usually takes 1–2 hours. I'll be there with you.
Q: What do I need to bring to closing?
A: You'll need a valid government-issued photo ID, your payment for closing costs and down payment (confirm the exact amount and method with your title company in advance), and any documents your lender or title company has requested. Don't make any large purchases, change jobs, or open new credit accounts between going under contract and closing — this can affect your loan approval.
Q: What is title insurance and do I need it?
A: Title insurance protects you from financial loss if a problem with the title to your property is discovered after closing — things like undisclosed liens, ownership disputes, or errors in public records. There are two types: lender's title insurance (required by your lender) and owner's title insurance (optional but strongly recommended). It's a one-time fee paid at closing and it protects you for as long as you own the home. I always recommend it.
Working with thomas r. Miller
Q: How much does it cost to work with you as my buyer's agent?
A: In most transactions, nothing. My buyer representation is typically paid by the seller as part of the transaction. You get a full-service, experienced local agent in your corner at no out-of-pocket cost to you. We'll discuss the specifics of how buyer agent compensation works in your situation before we get started so there are no surprises.
Q: What areas do you serve?
A: I'm based in Lebanon and specialize in Wilson County — including Lebanon, Mt. Juliet, and Watertown. I also serve Williamson County (Franklin, Spring Hill, Nolensville), Davidson County and Nashville, and communities throughout Middle Tennessee within about a 1.5-hour radius of Nashville. If you're not sure whether your target area falls within my coverage, just ask.
Q: How quickly do you respond to calls, texts, and emails?
A: Quickly. Real estate moves fast and I know that timely communication matters — especially in a competitive market where a delayed response can mean losing a home. I make it a priority to be reachable when my clients need me. You'll also be working with my admin and transaction coordinator throughout the process, so you'll always have a point of contact.
Q: Do you work with first-time buyers?
A: I love working with first-time buyers. There's nothing more rewarding than handing someone the keys to their first home. I'm patient, thorough, and will make sure you understand every step before we take it. No pressure, no rushing — just genuine guidance from someone who cares about getting it right for you.
Q: Do you work with buyers who are relocating from out of state?
A: Absolutely — it's one of my specialties. I offer virtual tours, remote consultations, and can coordinate everything through a remote or mail-away closing so you don't have to be physically present for every step. Check out my Relocation page for a full overview of how I help out-of-state buyers.
Q: What if I'm not ready to buy yet — can I still reach out?
A: Of course. I'd rather talk to you 6 months before you're ready than have you make a mistake because you didn't have the right information. Whether you're just starting to think about buying or you're ready to make an offer this week, I'm happy to connect. No pressure, no obligation — just honest conversation about your goals and what's possible.
Still have a Question?
Reach out anytime by phone call, text, or the contact form below. There is no such thing as a question too small when you are making one of the biggest decisions of your life.
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Ready to Start Your Relocation Journey?
Call me today for a free, no-pressure Buyer consultation. Let's talk about your goals and find out what is possible in today's Middle Tennessee market.
(615) 917-4158 millerlandandluxury@gmail.com
