Buying your first home in Chattanooga? You’re not alone—rising demand and shifting market trends make 2025 a pivotal year for new buyers. With median home prices around $345,000, there’s more opportunity to compare neighborhoods and make informed decisions. The city provides resources for budgeting classes, down payment assistance and zero-interest mortgages for qualifying first-time buyers.

 5 Essential Tips for First-Time Buyers

1. Get Pre-Approved Early

Don’t just “get approved”—secure a full mortgage pre-approval before house hunting. This not only clarifies what you can afford but also makes your offer stronger in today’s housing market.

2. Explore Local Assistance Programs

Take advantage of initiatives that can be combined with DPA, such as the “Great Choice Home Loan” and “Great Choice Plus” which educate in financial planning, down payment assistance and zero-interest mortgages for qualifying buyers. These tools can help you purchase a home sooner instead of waiting years to save.

3. Find a Real Estate Agent

Work with an experienced local real estate agent who knows the area inside and out. A trusted agent can guide you through neighborhood comparisons, current market trends, and pricing strategies. Their expertise helps you make smarter decisions and increase your chances of securing the right home.

4. Research Neighborhoods Thoroughly

Every Chattanooga neighborhood offers unique advantages: North Shore has walkability and riverfront living, Hixson highlights family-friendly affordability, and East Ridge for growth potential. Compare school districts, commute times, and long-term resale value before signing. Use the Chattanooga Housing Study (CHCRPA) to understand neighborhood demand and trends.

5. Budget Beyond the Sale Price

Many first-time buyers overlook costs beyond the down payment. Plan for closing costs, inspections, insurance, and small repairs. Even if you qualify with as little as 3% down, having a cushion will make the transition smoother.

6. Stay Flexible and Strategic

Keep contingencies realistic, stay responsive with your lender and consider a variety of property types or locations. Flexibility often gives first-time homebuyers the advantage.