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Your Guide to Buying a Home in Kansas

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Your Guide to Buying a Home in Kansas

The state flag of Kansas blowing in the wind

In a housing climate that feels uneasy, it’s time to make sure you know all the ins and outs of how to buy a home. If you want the financial benefits while fulfilling all the necessary requirements, it’s time to consider the process of getting your new home in Kansas today! Buying a home might seem overwhelming, but the moment you go to an open house and envision yourself with the keys will be the moment you find the drive to pursue owning a home. Landmark National Bank wants to provide you with the information and some simple steps to make the process that much easier.  

Financial Factors To Consider When Buying a Home 

The first thing to consider before buying a house is ensuring you are aware of the property taxes and the cost of living in Kansas. Having a budget is necessary, and maintaining it means learning about the varying financial factors. 

Cost of Living in Kansas  

Overall, the cost of living in Kansas is lower than the national average of 100 by 12%, making it a wallet-friendly state. Using the city of Wichita, Kansas as an example, it is 31.17% lower than the cost of living in New York City. 

Property Taxes in Kansas  

Property taxes in Kansas average about 1.34%, according to the Tax Foundation, which is slightly above the national average. Taxes are based on the value of the property, which is determined by the county appraiser, meaning there could be an adjusted property tax depending on where you live in Kansas.  

Consider Home Owner Programs 

A man works at a laptop with a piece of paper and a pen in his hands 

After becoming aware of the financial factors to consider, a homeownership program can help first-time buyers purchase their first home. A homeowner program in Kansas can assist in the initial down payment process making owning a home more affordable. There are a number of programs to choose from that can fit varying needs.  

  • Home Possible: Recipients of this program may obtain fixed-rate mortgages with a term of up to 30 years for one-to-four-unit properties, condominiums, manufactured homes, and planned united developments. 
  • Kansas Housing Assistance: For eligible applicants, you can apply for a low-interest loan and receive up to a 5% grant for cash assistance on a down payment or closing costs. 
  • Federal Home Loan Bank Housing Assistance Program: This program is structured towards low-income households, and helps to finance purchases, construction, and rehabilitation.  

Great Locations to Live in Kansas  

After the financial factors are settled, the homeowner programs are considered, then making a decision on location is the next matter. Kansas has several metropolitan areas that are family-friendly and popular for buying a home.  

If you’re considering moving to Kansas, it’s important to research the areas you could live in. If you want more of an art scene, maybe excellent healthcare, potential academic opportunities, or possibly an opportunity to work in agriculture, Kansas has a variety of cities to pick from. Here are a few favored options. 

  • Topeka: The capital city of Kansas, Topeka has a lower cost of living compared to other cities in the state with a population of 125,000 people. 
  • Overland Park: The 2nd biggest city in Kansas has the scenic Indian Creek Trail, live country music venues, and family friendly community making it popular among young families.  
  • Lawrence: The University of Kansas is based in the city of Lawrence, filling it with a vibrant area that has a strong cultural scene, arts, shops, bars, and restaurants.  
  • Wichita: The largest city in Kansas, Wichita has a growing economy that includes fields such as aviation, healthcare, and agriculture, which makes it a great city to settle down in for professionals.  
  • Manhattan: With a population of 50,000, Manhattan, Kansas is a smaller city housing Kansas State University, and maintains a strong community with excellent academic opportunities.  

The Process of Buying a Home in Kansas 

Two professionals shaking hands over a clipboard in front of two model houses 

Now that you have the information that will play a role in buying a home, it’s time to go through the process of how to buy a home. Read these general steps to help you understand all the necessary components. 

  1. Apply for a home loan. It’s important to get approved so you have an idea of your budget for a home. 
  2. Get a real estate agent. An agent will help you find properties that fit your needs and budget.  
  3. Begin searching the housing market. Once you have your budget and your agent, you can make an informed decision on pricing, sizing, and condition with varying properties.  
  4. Get an inspection. Once you’ve found your home, it is important to identify potential issues for the future, and if you’re committed to something you might have to fix later on.  
  5. Send in an offer letter with the help of your real estate agent. Your agent will help draft a letter outlining the purchase price, contingencies, the closing date, and possibly the earnest money deposit. He or she will then send the letter to the seller’s agent.  
  6. The escrow period. Escrow (closing on a home) is the final step. Once your offer is accepted, a third-party agent will hold and manage the funds for both parties involved until the conditions of the transaction are met. An agent will place the funds in an escrow account while all of the conditions of the sale are verified before closing on the home. You will then walk through your home, sign the documents, and get your keys. 

Get Your Home Loan at Landmark National Bank 

You’ve got all the information you need, and now it’s time to apply for a home loan to buy your house in Kansas. As a top home loan lender, Landmark National Bank can provide you with your home loan. You can give us a call or find your nearest Landmark branch for more information about home loans and find out if you qualify.

First-Time Homeowners Programs in Kansas

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First-Time Homeowners Programs in Kansas

Porcelain figurines of a man and woman, a set of house keys, and a laminated home graphic with a wooden background and the words “First-Time Homebuyer.”

The process of purchasing a home for the first time can be an exciting next step in your life. Whether you are searching for a place to settle in with your family or somewhere to plant roots all on your own, there are many things to take into consideration as you are shopping around.

While deciding on the number of bedrooms, style of living room and kitchen, and how much backyard space you want tends to be more fun, figuring out your budget and how to pay for your mortgage and down payment is crucial. At Landmark National Bank, we strive to ensure you have access to all the tools necessary for a successful and stress-free homebuying experience.

We are here to walk you through the process of finding the right loan options for you. Continue reading to learn more about first-time homebuyer programs in Kansas as well as how to budget for your first-time homeowner down payment. You can also contact us today to speak to a professional about your loan options.

How Do I Know If I Qualify for First-Time Buyer Programs?

To qualify for most first-time homebuyer’s programs, you must not have had ownership interest in a residential property for a three-year period prior to your closing date. This includes both sole and joint owners.

With certain programs you may have additional income qualification requirements to qualify for aside from not owning a home within three years prior to your purchase. Make sure to check the requirements for the specific program you are applying for prior to beginning the homebuying process.

What Loan Options Are Available for First-Time Homebuyers?

A set of silver house keys sits on top of a brown notebook with the words “First-Time Homebuyer Loan'' on a desk filled with other notebooks, binder clips, and a calculator.

One of the most common first-time homebuyer’s programs in Kansas is the Kansas Housing Resources Corporation’s First-Time Homebuyer Program. While this grant allows you to borrow between 15% to 20% of the purchase price as a second mortgage, it also has many requirements and does not operate in several major areas including Topeka, Lawrence, Wichita, and most of Johnson County. Additionally, if you sell the home before 10 years are up you may have to pay back some of the down payment assistance.

That’s why Landmark National Bank offers several grant programs for Kansas residents that are both helpful and affordable, especially for first time homebuyers. These first homebuyer programs offered at your local Landmark National Bank include:

  • Kansas Housing Assistance Program. This is a statewide program providing recipients with a low-interest loan and up to a 5% grant for cash assistance for down payment or closing costs. You do not need to be a first-time homebuyer, but your qualifying income must below the income limits, for most areas in Kansas the limit is $121,240.00. This can use FHA, VA, USDA Rural Development, or conventional financing through Freddie Mac.
  • Federal Home Loan Bank Homeownership Set-Aside Program. This is a program to assist very low to moderate income first-time homebuyers. This program provides down payment, closing cost and repair assistance to first-time homebuyers earning at or below 80% of the Area Median Income. Assistance available per household is between $2500 and $5000.

In addition, Landmark National Bank also partners with the Missouri Housing Development Commission to provide additional financial assistance to first-time homebuyers across the state of Missouri. Apply for any of the above grants available to first-time homeowners at your nearby Landmark National Bank today.

What Costs Should I Plan for When Purchasing a Home?

One of the best pieces of advice we can give is to start saving as early as possible and plan for each cost ahead of time. Most are unaware of the many costs associated with purchasing a home. Luckily, we can take you through exactly what to plan for and see if you can get assistance with the previously mentioned grant programs.

Your first major cost will be your down payment. Depending on the program you go with and the lender you choose for your mortgage, your first-time homeowner’s down payment may be as low as 3% down. However, this is dependent on your credit score and the loan program you are borrowing from. The other two major costs to keep in mind are closing costs and move-in expenses. These costs tend to be a bit of a surprise for homebuyers, particularly those who are purchasing a home for the first time.

Closing costs will typically range between 2% to 6% of the loan amount. These are typically fees and expenses that need to be paid in order to finalize your mortgage and cover things like home inspections and title insurance. Move-in expenses tend to be less expensive and include costs for movers, home repairs, and upgrades. Once you’re settled, make sure to budget for your mortgage payment, property taxes, and insurance, plus set money aside for any surprise repairs.

Contact Landmark National Bank To Learn More About First-Time Homeowner Programs

Simplify your homebuyer’s journey and apply for a first-time homeowner program at Landmark National Bank today. We are also happy to help you open a checking and savings account so you can save for your dream home. Visit your local Landmark National Bank today.