If you’ve never bought a home before — or it’s been a while since you have — the process can feel like a lot of moving parts happening at once. Contracts, inspections, appraisals, closing costs, deadlines you didn’t know existed. We get it. We walk buyers through this exact process all the time here in Sweetwater and across Monroe, McMinn, Loudon, and Blount counties, and almost every one of them starts the same way: a little excited, a little overwhelmed, and full of questions.
So let’s make this simple. Here’s exactly what happens, in order, when you buy a home in East Tennessee — from your first budget conversation to the day you get your keys.
Step 1: Get Clear on Your Budget Before You Start Looking
It’s tempting to start scrolling listings first. We understand the pull — but the buyers who have the smoothest experience are the ones who know their numbers before they fall in love with a house.
That means having an honest conversation about what you can comfortably afford each month, not just what a lender says you qualify for. It also means starting to think about closing costs early: buyers in Tennessee typically pay somewhere between 2.5% and 3.5% of the purchase price in closing costs, on top of the down payment.¹ On a $300,000 home, that’s roughly $7,500 to $10,500 — money you’ll want set aside well before you’re under contract.
If this is your first home, it’s also worth knowing that the Tennessee Housing Development Agency (THDA) offers down payment assistance of up to 5% of the purchase price (or up to $15,000) through its Great Choice Home Loan program, along with options specifically for veterans, teachers, and first responders through Homeownership for Heroes.² We cover these programs in more depth in a separate guide, but it’s worth raising with your lender at this very first step, before you assume you need a large sum saved up.
Step 2: Get Pre-Approved — Not Just Pre-Qualified
There’s a real difference between a pre-qualification and a pre-approval, and in a competitive listing situation, that difference can cost you the house.
A pre-qualification is a quick, informal estimate based on what you tell a lender. A pre-approval means a lender has actually verified your income, assets, and credit, and is prepared to back that number in writing. When you’re ready to make an offer, sellers and their agents want to see a pre-approval letter, not just a good feeling.
This is also the step where it pays to talk to more than one lender. Rates, fees, and loan programs vary, and a few minutes of comparison shopping up front can save you real money over the life of the loan.
Step 3: Find Your Agent and Start the Real Search
Once you know your budget, this is where the fun part starts — and where having someone who knows the local market matters most. East Tennessee isn’t one market; it’s a patchwork of small towns, each with its own personality, price point, and pace. A home that sits 60+ days in one town might go under contract in a week in the next one over.
This is also the point where your agent should be doing more than opening lockboxes. Beth holds her Accredited Buyer’s Representative (ABR) designation, which means she’s completed specific training focused entirely on representing buyers’ interests — not just showing houses, but negotiating on your behalf, flagging red flags, and helping you understand what you’re actually looking at.
Take your time here. Tour homes in person when you can, ask questions about the neighborhood and not just the house, and don’t be afraid to look at a wider radius than you originally planned — sometimes the town one exit down turns out to be the better fit.
Step 4: Make an Offer
When you find the right home, your agent will help you put together a purchase offer using the standard Tennessee REALTORS® purchase and sale agreement. This is where earnest money enters the picture — a deposit, typically 1% to 3% of the purchase price, that shows the seller you’re serious.³ That money doesn’t go to the seller up front; it sits in an escrow account with the listing brokerage or a title company until closing, and it’s credited toward your purchase at the end.³
Your offer will also include your proposed timeline for inspections, financing, and closing, along with any contingencies — conditions that have to be met for the sale to move forward, like a satisfactory home inspection or a successful appraisal. This is where local knowledge matters again: what’s considered a strong, fair offer in Sweetwater might look different than one in Knoxville, and your agent should be able to tell you exactly where the market stands on the specific home you want.
Step 5: Due Diligence — Inspections and Disclosures
Once your offer is accepted, the clock starts on what’s often called the due diligence period. This is your window to inspect the home and make sure there’s nothing hiding that would change your mind, or your offer.
Tennessee law requires most sellers of residential property to provide either a completed property disclosure statement or, in more limited cases, a disclaimer statement.⁴ The disclosure requires sellers to answer specific questions in good faith about the condition of the property, including things like known sinkholes, whether a structure has ever been moved from one foundation to another, and known issues with septic or soil conditions.⁴ Some sellers are exempt from this requirement — for example, in certain foreclosures, court-ordered transfers, or new construction covered by a warranty — so it’s worth confirming with your agent exactly what applies to your specific purchase.⁴
Regardless of what the seller discloses, we always recommend a professional home inspection. An inspector will check the roof, foundation, HVAC, electrical, and plumbing systems, and give you a clear picture of what you’re buying — and what, if anything, needs to be negotiated before you move forward.
Step 6: Appraisal and Loan Underwriting
While you’re working through inspections, your lender is working through the loan process on the other side. If you’re financing your purchase, the lender will order an appraisal — an independent assessment of the home’s value, which protects both you and the lender from paying more than the property is actually worth.
At the same time, your loan moves through underwriting, where the lender verifies all of your financial documentation before issuing final approval. This is also the stage where your lender will begin preparing your Closing Disclosure, a document that outlines your final loan terms and closing costs, which you’re entitled to receive at least three business days before closing.
Step 7: Closing Day
Closing day is where all of the pieces — your financing, the title work, and the contract — come together. In Tennessee, an attorney isn’t required to close a residential real estate transaction, and in most of East Tennessee’s metro-adjacent markets, a title company typically handles the closing, though attorneys are still commonly involved in more rural areas.⁵ Either way, the closing agent will handle the title search, hold and disburse funds, prepare the settlement statement, and record your deed with the county Register of Deeds.⁵
Here’s what you’ll actually pay at the table, beyond your down payment: Tennessee’s transfer tax runs $0.37 per $100 of the sale price (0.37%), which is customarily paid by the seller, though this can be negotiated in either direction depending on the market.⁶ If you’re financing your purchase, you’ll also pay a mortgage recording tax of $0.115 per $100 of your loan amount.⁶ Combined with lender fees, title insurance, and prepaid items like homeowners insurance and property taxes, this is where that 2.5%–3.5% closing cost estimate from Step 1 comes into play.
Once everything is signed and funds are disbursed, the deed is recorded, and the home is officially yours.
Step 8: Move In and Settle In
This is the step nobody needs instructions for — but it’s worth saying anyway. Take a breath. You made it through a process with a lot of moving parts, and you’re home.
If you’re new to the area, this is also where a good agent keeps showing up. We love introducing new neighbors to the towns we serve — whether that’s pointing you toward the best coffee in downtown Sweetwater or helping you figure out which county’s schools fit your family best. Buying the house is the finish line for the transaction. Getting to know East Tennessee is really just the beginning.
Common Questions About Buying a Home in East Tennessee
How much are closing costs when buying a home in Tennessee?
Plan on 2.5% to 3.5% of the purchase price, on top of your down payment. That covers lender fees, title insurance, the mortgage recording tax ($0.115 per $100 of your loan amount), and prepaid items like homeowners insurance and property taxes. On a $300,000 home, that’s roughly $7,500 to $10,500 — worth having set aside well before you’re under contract.
Do you need an attorney to close on a house in Tennessee?
No — Tennessee doesn’t require it. In most of East Tennessee’s metro-adjacent markets, a title company handles the closing from start to finish. Attorneys are still common in more rural areas, and either way, someone is handling the title search, holding your funds, and recording the deed.
How much earnest money do you need to make an offer?
Typically 1% to 3% of the purchase price. That money doesn’t go to the seller — it sits in an escrow account with the listing brokerage or a title company until closing, at which point it’s credited back toward your purchase.
What does Tennessee’s property disclosure law actually require?
Sellers of most residential properties have to give you either a completed disclosure statement or, in more limited cases, a disclaimer statement, before you sign a contract. The disclosure covers known material defects — things like foundation issues, sinkholes, or a home that’s been moved from one foundation to another. A handful of situations are exempt, including certain foreclosures, court-ordered transfers, and new construction under warranty, so it’s worth confirming with your agent which applies to your specific purchase.
Are there first-time home buyer programs in Tennessee?
Yes. The Tennessee Housing Development Agency (THDA) offers down payment assistance of up to 5% of the purchase price, or up to $15,000, through its Great Choice Home Loan program. There’s also a Homeownership for Heroes option for veterans, active military, teachers, and first responders. We’re happy to walk you through whether you qualify.
Ready to Start Your East Tennessee Home Search?
Every one of these steps goes more smoothly with someone in your corner who knows the local market and has walked buyers through it before. Beth brings her ABR, SRS, and PSA designations and a heart for making this process feel personal, not transactional. Tyler brings over a decade of engineering and operations experience to keep every detail on track. Together, that’s the whole point of The Martin Group: serve people well.
Not sure which community is right for you? We’ll help you match your lifestyle to the right place — and make sure you get the home you deserve.
This post is intended as general educational information, not legal or financial advice. Contract terms, disclosure requirements, and closing procedures can vary by county and transaction — always confirm specifics with your agent, lender, and closing attorney or title company.
Sources: Home & Lake, “Closing Costs in Tennessee — What Buyers and Sellers Need to Know” (2026); Tennessee Housing Development Agency (THDA), Great Choice Home Loan and Down Payment Assistance programs (2026); Freedom Real Estate Services, “Tennessee Real Estate Closing Process Step by Step”; Tennessee Code Annotated § 66-5-202, Residential Property Disclosures; Collins Legal, “Tennessee Real Estate 101: Do You Really Need an Attorney to Close the Deal?”; Tennessee Department of Revenue, Recordation Taxes.
