Research a Variety of Financial Institutions
Different institutions offer different mortgage rates in Kansas City, depending on where their emphasis is in the market place. Lenders who get their business from first time homebuyers may offer better mortgage rates for homebuyers than homeowners looking to refinance. Therefore, it’s important to contact a wide range of financial institutions, such as:
- Direct lenders
- Regional banks
- Credit unions
- Community banks
- National banks
Since mortgage rates fluctuate frequently, make sure to contact lenders on the same day to get an accurate depiction of who gives the best deals.
Find Out If You Qualify for Special Loan Programs
Some loan programs offer better mortgage rates to those who qualify. Before settling on a standard mortgage rate in Kansas City, research:
- VA loans
- FHA loans
- USDA loans
- HUD programs
Decide on a Closing Date
The amount of time it takes to close on your house will affect the Kansas City mortgage rate your lender provides. The shorter the period, the smaller the mortgage rate. A 90 day loan lock can be as much as 33% higher than a 60 day loan lock.
Ask Your Lender About Fees
Mortgage rates in Kansas City are not the end-all-be-all of comparison shopping for lenders. Your lender will be required to give you a good faith estimate that outlines all lending fees within 3 days of submitting your loan application, but make sure you inquire about any other “hidden” costs you may not be aware of.
Consider Paying Points to Adjust Your Mortgage Rate
Points are an upfront fee that can reduce your mortgage rate or lender fees. If you are planning on keeping your loan for a longer span of time, you will benefit from paying points. However, if you plan on paying your loan in a short period of time—7 years or less—you will pay more in the upfront costs than your lower mortgage rate will save you.