Closing on a home in Tennessee
The taxes, the fees, the programs, and the rights Tennessee gives you — whether the industry mentions them or not.
Six things every Tennessee buyer and seller should know
Tennessee charges a realty transfer tax of $0.37 per $100 of the sale price, collected when the deed is recorded. On a $400,000 home that is $1,480 — and WHO pays it (buyer or seller) is negotiable in the contract, not fixed by law. Most Middle Tennessee contracts put it on the buyer by default. You can negotiate it.
Recording a mortgage costs an additional indebtedness tax of $0.115 per $100 borrowed above the first $2,000, plus per-page recording fees that vary by county.
Tennessee does NOT require an attorney to close a real estate transaction. Title companies, escrow companies, and attorneys all close here. Whoever closes yours, you have the right to receive and review your Closing Disclosure at least 3 business days before closing — use them.
Title insurance rates are NOT set by the state in Tennessee. Different companies charge different premiums for the same coverage — you are allowed to shop your title and closing provider, and the loan estimate that says otherwise is wrong.
Property taxes are paid in arrears and prorated at closing. The seller credits you for their share of the year; make sure the proration on your settlement statement uses the right tax amount, not last year's.
The Tennessee Housing Development Agency (THDA) Great Choice Plus program offers down payment assistance to eligible buyers statewide as a second loan — many Middle Tennessee buyers who qualify never hear about it because nobody at the table is paid to mention it.
Middle Tennessee guides
Latest Tennessee reporting
- Wire Fraud Is Hitting 1 in 20 Home Closings. Most Buyers Have No Idea They Are the Target.
Criminals now steal $70,000 or more per incident using AI and spoofed emails. Here is the one rule that stops almost every scheme.
- THDA Just Raised Its Price Cap by $100,000. Here's What That Means for Your First Home in Tennessee.
If you earn under $160,720 and have been priced out of single-family homes in Nashville or Middle Tennessee, this May 2026 change may reopen the door.
- Chattanooga's New $21,000 Down Payment Help: Do You Qualify, and What's the Catch?
The city just launched its biggest first-time buyer program yet. Here's the math, the fine print, and the three steps to take before your next closing.
Worth reading before any closing
- The Rate Lock Trap: What Homebuilders Won't Tell You About New Construction
If your new construction home isn't finished before your mortgage rate lock expires, you could lose your deposit AND face a payment jump of $500 or more per month. Here is what you need to know before you sign.
- That $100-a-Month Savings on Your Mortgage May Be Sitting in Your Credit File Right Now
VantageScore 4.0 is now live for conventional loans — here's how to find out if your lender is hiding a lower rate from you.
- Your Right to Negotiate Real Estate Commissions Just Became Real. Here's How to Use It.
The NAR settlement that took effect August 17, 2024 gave home buyers and sellers something they always had on paper but rarely used: real power to negotiate agent commissions. Here's what changed, what it means for your closing, and exactly how to use it.
- Deed Theft Is Spiking. Here's What Could Disappear From Your Closing If You're Not Watching.
Complaints jumped 240% in two years. A new NYC office is fighting back. Here's how to protect your title before someone steals your house out from under you.
- Your FHA Pre-Approval Just Jumped $17,000
FHA loan limits for 2026 are now $541,288 baseline — up $17,000 from 2025. Here's what that means for your buying power and what to do before you lock your rate.
- The Rate Lock Math Nobody Walks You Through at Your Closing Table
Before you lock or float down, run these three numbers against your actual loan scenario