How to Buy a House in Kansas: A Homebuyer’s Guide
Updated: April 26, 2023
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Zillow's home value index shows that Kansas's average home value is $216,078. MoneyGeek found that the average cost of a home in a state has increased by 10.1% in the last year.
However, Kansas is one of the cheapest states to buy a property, as the average home value across the U.S. is $357,589. There was a 13.5% increase in average home value across the country compared to the previous year.
Before you buy a home in Kansas, you must have information about mortgage rates, your ideal location, a home inspection, mortgage pre-approval and other essential details.
Choose an Ideal Location
Your home’s location plays a vital role in not only its value but also your mortgage rates. Homes in busy cities tend to be more expensive than those in rural areas.
Besides location, other factors like neighborhood culture, recreational activities and access to amenities also significantly affect a property’s price.
Calculate Mortgage Rates
Before applying for a mortgage loan, it’s essential to know the current mortgage rates. Since there are different types of mortgages, rates will vary based on which one you decide to apply for.
Lenders analyze your credit score, property price, location, down payment, loan amount, term and more to determine your rate.
Prepare Down Payment Requirements
Each mortgage loan has different down payment requirements and how much you put down affects your loan’s total cost. For example, if you opt for conventional loans, you must put in a 20% down payment. On the other hand, FHA loans only require a 3.5% down payment.
A higher down payment means lower monthly mortgage costs, while a lower down payment means higher monthly costs.
Get Pre-Approved for a Mortgage
You can apply for pre-approval once you have chosen your ideal lender. A pre-approval shows the seller that you can secure a mortgage loan, proving that you are a more serious buyer.
When you prequalify, the lender will let you know your loan terms and amount after analyzing your provided information. It doesn’t indicate that you can actually get a loan.
Conduct a Home Inspection
There are many reasons why conducting a home inspection can significantly benefit the homebuyer.
A thorough home inspection by a licensed inspector can determine if the property you’re looking to purchase has any defects or safety issues. If any issues are detected, you can negotiate with the seller to lower the home price or fix them.
Close Your Mortgage Loan
Once you go through your mortgage loan documents and review the details, you can begin closing your loan. Before you do that, it’s essential to analyze the appraisal report and provide the necessary documents.
You will also have to pay closing costs between 2% to 5% of the loan amount. These costs include various fees and expenses, including taxes, loan origination fees and more.
Kansas Homebuying Details
Before you search for the best place to buy a house in Kansas, consider your lifestyle and other needs to determine which location and home will suit you best. The average home value in Kansas is less than that in the U.S., which means that the state is one of the cheapest locations to purchase a home.
Various national and state homebuyer programs can help borrowers purchase their first home. You can benefit from these programs if your financial situation doesn’t allow you to make a large down payment.
State of Kansas first-time homebuyers program
This provides down payment assistance to low-income borrowers in Kansas looking to purchase their first home.
Kansas Affiliates of Habitat for Humanity
If you qualify, volunteers will help you build or improve your first home through this program. You can begin by searching for your local Habitat for Humanity.
U.S. Department of Agriculture Rural Housing
First-time homebuyers looking to purchase a home in eligible rural regions can benefit from no-down-payment loans provided by the U.S. Department of Agriculture Rural Housing.
Frequently Asked Questions About Buying a Home in Kansas
It might be overwhelming to go through the process of becoming a homeowner in Kansas. MoneyGeek answered the following frequently asked questions to help you understand how it works.
When looking for a home in Kansas, consider your needs first and assess which property location will best fit them. It’s also essential to analyze your financial situation and ascertain how much mortgage debt you can afford.
Since a mortgage loan is a long-term commitment, it’s essential to analyze your situation and then decide if buying a house in Kansas is a good idea for you.
The average home value in Kansas is lower than in the rest of the U.S. and is growing slower. Buying a house in Kansas can be a great option because it’s one of the cheapest places to live with a low cost of living. However, the housing market is always changing, so you never know when it might go down.
It depends on the home you want to buy. You can use our mortgage calculator to determine how much you need in order to buy the home you are considering.
In Kansas, the average property tax rate is 1.29%. However, this can vary based on your county or city.
According to Zillow’s rankings, the most affordable cities to live in Kansas include Geneseo, Chase and Bushton.
sources
- Habitat For Humanity. "Find your local Habitat for Humanity." Accessed October 24, 2022.
- LivingCost.org. "Cost of Living in Kansas State, US." Accessed October 24, 2022.
- Taxrates.org. "Kansas Property Taxes 2023." Accessed April 26, 2023.
- U.S. Department of Housing and Urban Development. "Homeownership Assistance: Kansas." Accessed October 24, 2022.
- Zillow. "Compare Today’s Mortgage Rates in Kansas." Accessed November 25, 2022.
- Zillow. "Kansas Home Value Index." Accessed November 25, 2022.
- Zillow. "United States Home Values." Accessed November 25, 2022.