It is a great time to buy a Kansas City home or condo for many would-be homeowners. The Kansas City real estate market offers historically low interest rates, as well as affordable home prices.
Here are 10 steps that buyers can take to make their Kansas City home dreams a reality!
1. Savings. You may already know how much monthly payment you can support. Mortgage experts recommend no more than 29% of your monthly income. The home buying process will also include upfront costs, such as a downpayment and closing costs.
2. Downpayment options. Do you qualify for downpayment assistance programs? Will you be able to get an FHA loan and pay 3.5 percent down? Need help with the down payment? Do you have a relative that would like to make a downpayment gift? Also, In certain areas like Gardner, Kansas you can buy a home with zero down by obtaining a RD USDA mortgage loan. Many financial experts recommend a downpayment of 10-20%, so be sure to explore your options!
3. Check Credit Report. Your credit report says a lot about you. Kansas City mortgage lenders use it to evaluate your risk potential and to inform themselves on how responsible of a borrower you are. They use this report and subsequent score to figure your interest rate. The more stellar your report, the better your score and thus lower your rate. Be sure to check your report for accuracy, and report any errors to the credit reporting agencies.
4. Get Prequalified. It's time to talk to a Kansas City mortgage lender! A pre-qualification will give you a ballpark figure of how much the bank would be willing to lend you. Are you looking for a $150,000 home or a $300,000 home?
5. Get Full Pre-Approval. This is the official letter from the Kansas City mortgage lender that says they will be willing to lend you money. Many home sellers look for buyers who are completely approved for a mortgage loan.
6. Affordability. The bank may tell you that you can afford a home worth $400,000. This does not mean you want to borrow to your maximum pre-approval amount. A more modest home of $200,000 may fit better in your financial plans. Remember there will be other monthly expenses to consider when purchasing.
7. Housing Criteria. You have a monthly budget, now develop a list of what you need and want. This can include anything from "must have 4 bedrooms" to "finished basement" or "granite counter tops".
8. Neighborhood choice. Location strongly affects prices. A 2,500 square foot ocean front home in California will costs much more than a home in Kansas City. Decide what Kansas City neighborhoods and areas are the best fit for you. This will help narrow your home search. Take into account location to work, shopping, parks and schools. What factors are most important to you?
9. Hire a Kansas City full-time agent. An Kansas City real estate agent can help you navigate the entire process from searching, putting in offers, to where to hire an inspector or general contractors. Although 84% of home buyers now start their search online, a real estate agent will have access to tools and knowledge that will help in your real estate search.
10. Start your Kansas City home search! Realtor.com, Trulia, Zillow and and IDX are wonderful places to begin your search. Nothing though will replace the Heartland Multiple Listing Service (HMLS). The HMLS is only reserved for licenced Kansas City real estate agents who are REALTORS. To have access to the HMLS, you’ll need to hire a Kansas City real estate agent who is also a REALTOR.
Can you think of any steps that I might have missed?
Here are 10 steps that buyers can take to make their Kansas City home dreams a reality!
1. Savings. You may already know how much monthly payment you can support. Mortgage experts recommend no more than 29% of your monthly income. The home buying process will also include upfront costs, such as a downpayment and closing costs.
2. Downpayment options. Do you qualify for downpayment assistance programs? Will you be able to get an FHA loan and pay 3.5 percent down? Need help with the down payment? Do you have a relative that would like to make a downpayment gift? Also, In certain areas like Gardner, Kansas you can buy a home with zero down by obtaining a RD USDA mortgage loan. Many financial experts recommend a downpayment of 10-20%, so be sure to explore your options!
3. Check Credit Report. Your credit report says a lot about you. Kansas City mortgage lenders use it to evaluate your risk potential and to inform themselves on how responsible of a borrower you are. They use this report and subsequent score to figure your interest rate. The more stellar your report, the better your score and thus lower your rate. Be sure to check your report for accuracy, and report any errors to the credit reporting agencies.
4. Get Prequalified. It's time to talk to a Kansas City mortgage lender! A pre-qualification will give you a ballpark figure of how much the bank would be willing to lend you. Are you looking for a $150,000 home or a $300,000 home?
5. Get Full Pre-Approval. This is the official letter from the Kansas City mortgage lender that says they will be willing to lend you money. Many home sellers look for buyers who are completely approved for a mortgage loan.
6. Affordability. The bank may tell you that you can afford a home worth $400,000. This does not mean you want to borrow to your maximum pre-approval amount. A more modest home of $200,000 may fit better in your financial plans. Remember there will be other monthly expenses to consider when purchasing.
7. Housing Criteria. You have a monthly budget, now develop a list of what you need and want. This can include anything from "must have 4 bedrooms" to "finished basement" or "granite counter tops".
8. Neighborhood choice. Location strongly affects prices. A 2,500 square foot ocean front home in California will costs much more than a home in Kansas City. Decide what Kansas City neighborhoods and areas are the best fit for you. This will help narrow your home search. Take into account location to work, shopping, parks and schools. What factors are most important to you?
9. Hire a Kansas City full-time agent. An Kansas City real estate agent can help you navigate the entire process from searching, putting in offers, to where to hire an inspector or general contractors. Although 84% of home buyers now start their search online, a real estate agent will have access to tools and knowledge that will help in your real estate search.
10. Start your Kansas City home search! Realtor.com, Trulia, Zillow and and IDX are wonderful places to begin your search. Nothing though will replace the Heartland Multiple Listing Service (HMLS). The HMLS is only reserved for licenced Kansas City real estate agents who are REALTORS. To have access to the HMLS, you’ll need to hire a Kansas City real estate agent who is also a REALTOR.
Can you think of any steps that I might have missed?
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1 Comments
Great Post and by the way....
ReplyDeleteSuggest to your buyers and sellers
that they obtain a professional home inspection!
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