Are you thinking of buying a new home in the Kansas city area? If so, one of the first things you will need to do is get per-qualified for a mortgage. While lending standards are far stricter than they used to be, it is still possible to qualify for a mortgage as long as you adhere to a few key suggestions. The following section provides some helpful tips for getting Kansas City mortgages that should have you well on your way toward home ownership in no time at all:
1. Start by improving your credit score as much as possible. Having good credit is practically a necessity if you want to qualify for a loan in today’s market. At least a few months before you plan to start house hunting, pull a copy of your credit report to make sure that it is accurate. Dispute any inaccurately reported items with the three major credit bureaus to get it cleaned up as much as possible. Also, in the months leading up to purchasing a house, avoid applying for new credit cards since having recent hard inquiries on your credit report can lower your score. Although the effect is minor, only dropping your score by a few points, it could mean the difference between getting approved or denied for the loan, particularly if you are right on the edge of the cutoff point.
2. Save up as large of a down payment as possible. Ideally, you should have at least 20% to put down on your new home. This will prevent you from having to pay private mortgage insurance. This insurance, which helps protect the lender in case you default on your loan, can add a significant amount of money to your monthly mortgage payments. By coming up with a large enough down payment, you can avoid this added expense, which in turn can make your monthly payments more affordable.
3. Don’t forget to factor in extra expenses when determining how much you can truly afford to borrow. Many people fail to take into account added monthly expenses such as property taxes, maintenance and repairs, utilities, homeowner’s association dues, homeowner’s insurance and private mortgage insurance when calculating how much they can afford. It is important to consider all of these fees and any other expenses associated with owning a home so that you can get a better estimate of how much you can truly afford.
4. Have a consistent work history. If you are thinking of buying a home, try to stay at your current job until your mortgage has been approved. Lenders like to see a long work history with the same company. Even if you quit your job and start a new one several months before applying, it can still negatively impact your chances of getting approved since you don’t have a long track record of working with the new company.
These tips should help you qualify for a Kansas City mortgage. By making sure your credit report is accurate, saving up a large down payment, only borrowing what you can truly afford and maintaining a steady work history, you can make yourself far more attractive to lenders.