How to Get a Mortgage in Kansas

There's no place like a home in Kansas. Dorothy and Toto knew the beauty of living in this state. To buy a home in Kansas, you will first want to find a decent home mortgage loan. Follow these steps to get a good Kansas home mortgage loan.

Instructions

Difficulty: Moderately Easy

1. Obtain a copy of your credit report. Carefully review it and make sure any errors are corrected.
2. Realize that in Kansas, mortgage brokers are required to be licensed but have no specific requirements. Ask for proof of their license.
3. There are currently no predatory lending (intentionally coercing consumers into contractual loans with unusually high payment terms and interest rates, often directed at uninformed borrowers or those with poor credit) laws in the state of Kansas. Of course, the Home Ownership and Equity Protection Act of 1994 federal law applies to all of the United States.
4. Compare loan rates and terms from several lending institutions such as mortgage brokers (individuals and agencies that arrange financing from a variety of lenders), credit unions, banks and online mortgage lenders.
5. Avoid Adjustable Rate Mortgages (ARM). ARMs move the interest rate risk from the lender and onto you. If interest rates rise so will your mortgage payment. If interest rates fall, your payment will stay the same or decrease slightly.
6. See if you qualify for homeownership assistance programs from the federal government and the state of Kansas. If you are a veteran, disabled, a low-income buyer, single parents senior citizen, or rural home buyers, you might qualify for a program such as the Kansas First Time Homebuyers Program (FTHB) or the Rural First-time Homebuyer Program.
7. Take your pertinent financial information (such as proof of employment, tax returns, etc.) to your lending institution and obtain pre-approval for a home mortgage loan. Pre-approval simplifies and expedites the loan approval process.
8. Choose a reputable licensed real estate agent and begin the search for your new home.
9. Finalize a home mortgage loan application with your lender, and place a formal offer on the home of your choice.
10. Pay all closing costs, attorney fees, and realtor fees at the time of closing. The lender will provide you with a schedule for repayment of the mortgage loan.

Tips & Warnings

• Make sure you shop around for the lowest interest rates. Even one quarter of a percent can mean thousands of savings over a 30-year mortgage.
• Have your prospective home professionally inspected. Discover problems that may exist before the deal is finalized.
• Do not let a real estate agent pressure you to buy a specific home, they may have another agenda.
• Before you sign anything, make sure that you thoroughly understand all the terms of the mortgage contract.
• Do not pay a lender to apply for a loan. No reputable lenders engages in this practice.
• Record low interest rates of the recent years have led to many unethical lending and loan scams. Have an attorney review any documents before you sign them.
• Make sure that the home title is clear of liens before you purchase it.