If you are considering buying a home, it’s a good idea to understand what it takes to get a home loan in Kansas City before house hunting. Buying your own home is one of the most important financial decisions you will make in your life. Saving for a down payment, reviewing your credit report, gathering financial documents, and researching payment and loan options can make choosing a home in Kansas City easier.
Start Saving for a Down Payment
Establishing a monthly budget will help you save enough money for a down payment. Depending on your lender and the type of mortgage you choose, you may be required to have a down payment ranging from 3.5% to 20% of the home’s total sale price. Some loan programs, such as Veteran’s Affairs loans and United States Department of Agriculture loans, may allow a borrower to use up to 100% financing in certain cases.
Check Your Credit Score
Having a good credit score puts you in a position to attract the best deal on your mortgage. Before you apply for a home loan in Kansas City, obtain a copy of your credit report. This will show you what your credit profile looks like and allow you to clean up any discrepancies or outstanding debt before sitting down with your lender.
Calculate a Monthly Payment You Can Handle
Use a mortgage calculator to find out what kind of monthly payment your budget can handle. Remember to add any extra costs so you can accurately calculate your payments including:
- Home insurance
- Any other expenses
Calculating your monthly payment is important because it gives you an idea of how much home you can afford without putting a strain on your finances.
Gather Your Financial Documents
When you apply for a home loan in Kansas City, your lender will need many different kinds of paperwork from you. Some of the most important documents to have ready for your lender are:
- Most recent paystubs for the past two months
- W-2 forms from your employer for the last two years to verify employment and earnings history
- Signed federal tax returns for the past two years
- Most recent bank and asset statements for two months
Having these documents readily available before applying for a home loan will help accelerate the process of your loan application.
Understand Your Loan Options
Homebuyers need to review the most common types of mortgage programs in order to make sure they are getting the best loan for their circumstances. The best way to accomplish this is to find a trustworthy loan officer who will listen to your needs and understand your unique situation. Using a mortgage professional can provide insight into the most appropriate home loan in Kansas City for you.
Choose a Lender You Can Trust
At Cornerstone, we can help you secure your home loan in Kansas City so your closing process goes smoothly. We will analyze your information and find the best mortgage for you, based your income, credit history and other factors.