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Buying a Home in Kansas City

Learn Each Step to the Home Buying Process in Kansas City

We know buying kansas city homes comes with a lot of questions, and that’s why we are here to help you every step of the way with your home purchase. Whether you are a first-time homebuyer or an experienced homeowner, purchasing a home can be a stressful process.

Choosing the right Kansas City Mortgage Lender can take the stress off your shoulders by communicating at each milestone and close on time without the hassle.

Our experience and expertise in the industry qualify us to assist you in finding the home loan financing that is best for your specific needs. Take a look at the different home purchase loan options, and contact us at any time when you would like to discuss the purchase of your next home.

Check out our First-time Home Buyer Guide

Step 1: Mortgage Pre-approval

Obtaining a pre approval letter is the first step before you purchase a home in Kansas City. We never charge a fee to get pre-approved for a mortgage loan. Learn everything you need to know about mortgage pre-approval.

This is a good time to review the “Do’s and Don’ts“ and get started on your mortgage pre-approval letter.

Step 2: Making an Offer on a Home

Once you are preapproved and ready to buy a house, its time to search for real estate professionals. You want to find a real estate agent that can navigate you through the housing market. We works with hundreds of top real estate agents in Kansas City and can provide you a list upon request.

Once you have chosen an experienced real estate agent, you are ready to start your home search. The agent will draw up the offer and submit it to the seller.

Typically, an earnest money deposit is required at this time to show that you’re serious about wanting to buy a home. The earnest money deposit is usually about 1% of the sales price.

The seller might counteroffer, so expect to negotiate until you reach a final purchase price. As soon as both parties accept the written offer and counteroffers, you have a legal contract. Now it’s time to get started on your loan application and notify your Loan Officer.

You will be sent a loan application package and a request for documents needed for processing. It is in your best interest to provide documents in a timely manner.

Step 3: Home Inspection

Metropolitan Mortgage encourages every buyer to get a Kansas City home inspection. The home inspector is usually hired immediately after the contract has been signed. It’s important that you don’t become too attached to a home until you’ve had it inspected by a certified professional.

An inspector is sometimes confused with a real estate appraiser. They determine the condition of a structure, whereas an appraiser determines the value of a property. It’s only through the home inspection where you’ll discover if the home requires minor or major repairs.

Any work required for the foundation, heating and cooling system, plumbing or electrical systems, could prove costly. Having this information upfront can give you some negotiating power or give you an acceptable reason to back out of the deal.

Once inspections are complete, your Real estate agent will submit a list of items that you want to be addressed (Resolution of Unacceptable Conditions) to the Seller. Please let us know as once you and the Seller have come to an agreement so we can order the Appraisal Report.

Step 4: Homeowners Insurance

Now it’s time to shop for homeowner’s insurance coverage on your dream home. Once you have chosen the insurance company we will need your agents name and number. We will need to provide them our loan number and loss payee information.

Step 5: Home Appraisal

Once you have completed the Home Inspection and feel confident to proceed, either you or your Realtor® can request that we order the appraisal report. Metropolitan Mortgage will order your home appraisal and charge the credit card provided at this time.

An appraisal provides you and Metropolitan Mortgage the fair market value of the Kansas City home. The appraiser will schedule an appointment with the Listing Realtor® to inspect the home.

The appraiser will obtain information on similar homes in the Kansas City area that have sold within the last six to twelve months to determine the market value.

The appraisal primarily documents obvious visual conditions, along with a cost and size comparison to other homes. You should receive your appraisal report by email, within 5 to 10 business days.

Step 6: Mortgage Underwriting

This is the final step in the loan approval process. Mortgage underwriting is the process used by Kansas City lenders to determine if the risk involved in offering a mortgage loan to home buyers is acceptable.

Once the loan processor submits the file for underwriting the underwriter will review your income, assets, debt, appraisal, and credit to ensure your loan fits the lending guidelines. The underwriting process typically takes between two to five business days.

Once the loan is reviewed by the underwriter a conditional preapproval is issued. Conditions are additional documents the underwriter must review and approve prior to issuing the final approval.

Once all conditions have been satisfied the underwriter will issue the final approval and you are ready to closing.

Step 7: Closing Process

Metropolitan Mortgage will answer your questions, stay involved and guide you through the loan process all the way to closing.

Prior to Closing

You will receive and must acknowledge receipt of the Closing Disclosure (CD) at least three (3) business days before closing can occur. The CD, which lays out the terms of the loan including an itemized list of fees associated with the closing.

Let us know immediately if you believe there are mistakes and ask about anything you don’t understand.

The Loan Closing

The “closing” is the last step in the homebuying process. The “closing,” also called “settlement,” is when you and all the other parties in a mortgage loan transaction sign the necessary documents.

What You Will Need to Bring

Everyone on title of the Kansas City property must attend the closing and bring a government-issued identification card with photo.

Please bring a certified, or cashier’s check made out to the title company to cover the remaining amount due (ie down payment, closing costs); as reflected on your final Closing Disclosure (CD).

Before wiring money, please read the article Email Phishing Scam.

Buying a Home in Kansas City
Buying a Home in Kansas City

Now it is Time to Celebrate!!

Feel free to contact us or Call Us with any questions no matter where you are in the home buying process!

Have Questions? Contact Us online or call us at 913.642.8300.

Learn about Buying a Home

Buying a Home FAQ

How much money should I save before buying a house?

If you’re getting a mortgage, a smart way to buy a house is to save up at least 5% of the sale price. This will cover the down payment and closing costs only. Keep in mind that you would also need funds for moving expenses. So if you buy a home for $300,000, you would pay about $15,000.

Can I afford to buy a house in Kansas City?

To calculate ‘how much house can I afford,’ a good rule of thumb is using 43% of your gross income. This is the total allowable debts, including your new mortgage payment, credit cards and other loans like auto and student loans.

Is buying a house always worth it?

According to the Federal Reserve’s 2020 Survey of Consumer Finances, homeowners have a net worth that is more than 40 times greater than their renter counterparts. As a homeowner, your payment can remain fixed while gaining a deduction for property taxes and appreciation. Whereby, renters can expect rent increases over time.

How do I buy a house with no money?

How to buy a house with no money down:

  • Apply for a zero-down VA loan or USDA loan.
  • Ask for a down payment gift from a family member.
  • Get the lender to pay your closing costs (“lender credits”)
  • Get the seller to pay your closing costs (“seller concessions”)

Is it hard to buy a home for the first-time?

Having an experienced Loan Officer and Realtor navigating the process will help make for a smooth transaction. If you need help finding a experienced ethical Realtor, please let us know,

Who qualifies for first-time homebuyer?

To qualify as a first home buyer, you must not have owned a home in the last three years. You must occupy the home you are purching as your primary residence. Additionally, you may need to take a online homeownership eduction course.

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