How to Buy a House in Kansas: 6 Steps

Purchasing a house is a major financial decision that requires careful consideration and planning. In Kansas, the average home value is $232,850, which is notably lower than the national average of $362,481. This makes Kansas a potentially more affordable option for homebuyers compared to other states.

Understanding down payment assistance programs, mortgage types and state-specific regulations and requirements can ensure a smooth journey toward homeownership in the Sunflower State. MoneyGeek provides the essential pointers to help you navigate the homebuying process in Kansas, from saving the down payment and choosing the ideal location to finding the best financing option for your particular needs and credit history.

According to the U.S. Census Bureau, the homeowner vacancy rate in Kansas in the second quarter of 2024 was 0.9%. The homeowner vacancy rate measures the proportion of homes available for sale that are currently unoccupied. This figure helps assess the balance between housing supply and demand.

The stable vacancy rate for homeowners is typically around 2%, providing homebuyers with a range of choices. With Kansas' vacancy rate at 0.9%, there is not enough inventory on the market to satisfy homebuyer demand. This could mean that homebuyers in Kansas may face challenges in finding available homes.

Before buying a house in Kansas, it's important to take a close look at your financial and credit history. A strong financial profile increases your chances of getting approved when applying for a mortgage. Lenders evaluate your creditworthiness, and having a good credit score and stable income can make the process smoother.

Your credit score plays a pivotal role in determining the mortgage loans and interest rates you qualify for. A higher score increases your chances of securing a reasonable rate. In Kansas, the average credit score in the third quarter of 2023 was 723, according to Experian. This data highlights the importance of maintaining a good credit score when seeking a mortgage.

If you have bad credit, defined as a score between 300 and 579 on the FICO scale, buying a house is still possible, though getting approved for a mortgage may be challenging. Refer to the table below to see which mortgage type is ideal for you based on the minimum credit score requirements.

Source: Experian

Your debt-to-income ratio (DTI) is a crucial metric that lenders use to determine how much of your monthly income is dedicated to debt payments. This helps lenders evaluate the amount of mortgage debt you can responsibly take on. In Kansas, the average mortgage debt in the third quarter of 2023 was $165,638, according to Experian. This figure highlights the additional financial responsibility you may face when purchasing a home.

Monthly debt payments factored into your DTI include credit card payments, car loans, student loans and other financial obligations. Use our debt-to-income ratio calculator below to see your front-end DTI, back-end DTI and total monthly debt payments. The front-end DTI considers housing-related expenses, while the back-end DTI encompasses all debt obligations.

Buying a house you can't afford can lead to financial strain and regret. To avoid this mistake, consider the 28% rule, which suggests you should not spend more than 28% of your gross monthly income on your mortgage payment. This guideline helps ensure your housing costs remain manageable and allows you to maintain a balanced budget.

According to the U.S. Bureau of Labor Statistics, the median annual income in Kansas as of April 2024 is $45,250. This translates to a gross monthly income of $3,771 before taxes. Applying the 28% rule, your monthly mortgage payment should not exceed $1,056. This calculation helps you determine a realistic budget for purchasing a home and prevents you from overextending your finances.

Use our mortgage calculator below to get a ballpark figure of your monthly mortgage payment in Kansas.

A down payment is the initial upfront portion of the total purchase price when buying a house. It plays a crucial role, as putting down 20% is often the standard. However, this can be a huge obstacle for many homebuyers. For instance, the average home value in Kansas is $232,850, which means a 20% down payment would be $46,570. If the home value is above average at $250,000, the 20% down payment would be $50,000.

Fortunately, saving up for a 20% down payment is not a requirement. Most mortgage types allow you to put less money down. Government-backed loans like VA loans require no down payment, while FHA loans require only a 3.5% down payment.

Keep in mind that if you put down less than 20%, your lender may require you to take out private mortgage insurance. You can use our PMI calculator to estimate your monthly private mortgage insurance (PMI) premium based on your credit score and down payment.

Kansas offers several down payment assistance programs that make homeownership more accessible. These programs are designed to help potential homebuyers overcome the financial barrier of a down payment, thereby making the dream of owning a home more attainable. For a detailed look at the available down payment assistance programs in Kansas, check out the table below. Programs are offered by the Kansas Housing Resources Corporation (KHRC).

Finding the right location in Kansas involves considering several factors. Start by evaluating the average house price in potential areas and how close they are to your family, friends and workplace or school. Proximity to public transportation, parks, restaurants and shopping centers can also influence your decision. These elements contribute to the convenience and quality of life in your new home.

The cost of living is another key factor in choosing your new home. According to the Missouri Economic Research and Information Center (MERIC), Kansas had a cost of living index of 87.3 in the first quarter of 2024, which is lower than the national average of 100. This means living in Kansas could be more affordable compared to other states. Consider these essential expenses:

• Food
• Healthcare
• Clothing
• Utilities
• Education
• Transportation
• Entertainment

Check out the table below to see some cities in Kansas and their average home values based on recent data. You can also use our cost of living calculator to help you estimate how much you'll need to pay for all the essentials in different locations.

Source: Zillow

Working with a real estate agent can significantly speed up your house hunt in Kansas. They provide the advice you need, assist with paperwork and offer an expanded list of property options you might not access on your own. Additionally, they can recommend other service providers such as title companies and inspectors, which are essential when buying a home in Kansas.
When finding a real estate agent, do your due diligence and interview those with experience in the neighborhoods you're interested in. Consider these tips:

• Find someone compatible with your needs and personality
• Verify the agent's credentials, training and licensure
• Ensure they have in-depth knowledge of the area
• Shop around for agents and compare their rates

Finding the best mortgage you can afford is a crucial part of the homebuying process. In Kansas, you have several options, including conventional, jumbo, FHA, VA and USDA loans. You can choose from 10-year, 15-year, 20-year, or 30-year terms and decide between a fixed-rate mortgage or an adjustable-rate mortgage (ARM). Selecting the best financing option for your situation can increase your chances of approval and help you save money in the long run.

Interest rates on a mortgage can change daily due to factors such as the type of mortgage, the lender and the economy. The annual percentage rate (APR) differs from the interest rate by including additional costs, such as fees, providing a clearer picture of the true cost of borrowing.

As of December 2024, the APR for a 30-year fixed conforming loan in Kansas is 6.50%, while the APR for a 30-year fixed rate FHA loan is 8.31%. Check the table below to see the current mortgage rates in Kansas by mortgage type.

Getting pre-approved for a mortgage in Kansas helps streamline your home-buying process. It allows you to know exactly how much you can afford, making your home search more focused and efficient. Lenders conduct a detailed review of your financial situation to issue a mortgage pre-approval letter, which is typically valid for 60 to 90 days. This letter can strengthen your position when making offers, as it shows sellers you're a serious buyer.

For a mortgage pre-approval, you need to submit several documents:

• Proof of income, such as pay stubs or tax returns
• Proof of assets, like bank statements
• Credit history
• Identification, such as a driver's license
• Social Security number

It's important to understand the distinction between mortgage pre-approval and prequalification. Prequalification is a less formal assessment that gives you a basic idea of what you might afford based on self-reported information. In contrast, pre-approval involves a more comprehensive evaluation, including a credit check, providing a more accurate picture of your borrowing capacity.

Home inspections are highly recommended in the homebuying process in Kansas because they help identify potential issues before a purchase is finalized. Inspectors typically examine various parts of the house, including structural components, roofing, plumbing, electrical systems and HVAC systems. The inspection report usually includes detailed findings, photos and recommendations for repairs or further evaluation. This information can be crucial for buyers to understand the true condition of a property and make informed decisions.

For example, an inspection might reveal major issues such as foundation problems or outdated electrical systems. These findings can affect the home's appraisal, potentially lowering its value. In some cases, buyers may decide to rescind their offer based on the inspection results, especially if the cost of repairs is substantial. Understanding the implications of an inspection can help buyers navigate the homebuying process more effectively.

Kansas does not regulate home inspections or require certification for home inspectors. Despite this, it is recommended that home inspectors seek certification from professional organizations such as the American Society of Home Inspectors (ASHI) or the International Association of Certified Home Inspectors (InterNACHI). These certifications can provide assurance of an inspector's competence and professionalism.

If you're looking for a home inspector in Kansas, ensure they are licensed. Consider checking online reviews, asking for references and finding out what previous clients have said. While Kansas does not offer a search tool for verifying licensed home inspectors, these steps can help you make an informed decision. By doing your due diligence, you can feel confident in the quality of your home inspection.

Home appraisals play a pivotal role in the homebuying process in Kansas by determining the market value of a property. This valuation is essential for both buyers and lenders to ensure that the price of the home aligns with its current market worth. According to the 2023 Appraisal Survey from the National Association of Realtors, the median appraisal cost in 2023 was $500.

While both inspections and appraisals are integral to the homebuying process, they serve different purposes. A home appraisal assesses the property's value, providing a basis for the lender to approve a loan amount. On the other hand, a home inspection examines the condition of the home, identifying any potential issues or repairs needed. Lenders require appraisals to confirm that the property's market value supports the loan amount, thereby safeguarding their investment.

Closing is the final step in buying a house in Kansas, marking the transfer of ownership and when you receive the keys to your new home. Your lender will provide you with a closing disclosure document three days before the official closing. This document outlines your loan terms, projected monthly payments and closing costs. Plan a final walk-through of the property with your real estate agent near closing day to ensure it remains in the expected condition.

On closing day, you will review and complete several documents that are essential to finalizing your home purchase. Below are some of the key documents you will need to sign:

• Final loan application: This document confirms the details of the loan you are receiving, including the interest rate and loan amount. It serves as a final review to ensure all terms are accurate before the loan is processed.
• Deed transfer: This legal document transfers ownership of the property from the seller to you. It is filed with the local government to officially record the change in ownership.
• Promissory mortgage note: This note is a written promise to pay a specified amount of money at a specified interest rate over a specified period. It outlines the terms of your mortgage and your commitment to repay the loan.
• Homeowners insurance: Homeowners insurance in Kansas can protect your new home against risks like theft, fire and natural disasters. This coverage ensures that you have financial protection in place for unforeseen events.

Closing costs are the fees incurred during the finalization of a real estate transaction. In Kansas, the average closing costs amount to $3,260, as reported by NAR. These expenses encompass various fees:

• Appraisal fee: This fee covers the cost of having a professional appraise the property's market value.
• Title search and insurance fee: This ensures the property title is clear and protects against future claims.
• Escrow deposit: Funds held in escrow to cover property taxes and insurance premiums.
• Prepaid costs: These include advance payments for items like homeowner's insurance and property taxes.
• Other closing costs: Additional fees such as attorney fees, credit report fees and recording fees.

If you are a first-time homebuyer, learning about the different first-time homebuyer programs in Kansas can help you achieve homeownership faster. These programs often provide financial assistance or favorable loan terms, making it easier to navigate the home buying process.

Buying a house in Kansas is a long-term financial commitment. We answered some frequently asked questions about buying a house in Kansas to kickstart your homebuyer journey.
Explore these insights to make informed decisions in your home-buying process.