SELLSTATE HEARTLAND REALTY • KC'S HOME TEAM

First-Time Home Buyer Guide for Kansas City

Buying your first home in Missouri or Kansas doesn't have to feel overwhelming.

Learn how financing works, how much money you may need, what happens after you make an offer, which inspections to consider, what closing costs mean and where first-time buyers may find assistance.

FIRST-TIME BUYER QUICK ANSWER

What Do You Need to Buy Your First House in Kansas City?

Most first-time home buyers need enough income and credit to qualify for an appropriate mortgage, money for applicable upfront expenses, and a property that meets both their needs and their lender's requirements.

But you do not automatically need perfect credit or a 20% down payment. Depending on your finances, property location, military eligibility and other factors, loan options may include conventional, FHA, VA, USDA and homebuyer-assistance programs.

Not sure if you're ready yet? That's okay.

You don't need to have the entire process figured out before talking with a real estate agent or lender. The first step is simply understanding where you are today and what would need to happen next.

FIRST HOME ROADMAP

How Do You Buy Your First Home in Kansas City?

Every purchase is different, but most Kansas City home buyers move through these basic steps.

1

Understand Your Financing

Talk with a mortgage professional about your income, debts, credit, savings, loan options and estimated monthly payment.

2

Choose Your Buyer's Agent

Your agent can help you understand the market, identify properties, evaluate homes, prepare offers, negotiate according to your instructions and coordinate the transaction.

3

Build a Focused Home Search

Compare communities, home styles, property taxes, commuting considerations, lot sizes, HOA requirements and the home features that matter most to you.

4

Tour and Evaluate Homes

Photos and virtual tours are useful, but seeing a home in person can reveal layout, condition, surroundings and other characteristics that may not be obvious online.

5

Make an Offer

Your offer can address price, financing, closing timing, inspections, appraisal provisions, possession and other contractual terms.

6

Complete Inspections and Due Diligence

Depending on the property, buyers may consider general, sewer, radon, termite, structural, roof, septic, well or other specialized inspections.

7

Financing, Appraisal and Title

Your lender continues underwriting and typically obtains an appraisal while the title company researches ownership and prepares for closing.

8

Final Walk-Through and Closing

Complete your final walk-through, review the required closing information, sign documents and complete the transaction according to the contract.

LET'S BUST A BIG HOMEBUYING MYTH

Do First-Time Home Buyers Need 20% Down?

No. A 20% down payment is not required for every home purchase.

The amount you need depends on your loan program, lender requirements, financial qualifications and the property being purchased.

Conventional

Some conventional mortgage programs are available to qualified borrowers with down payments significantly below 20%.

FHA

FHA-insured financing can allow qualifying borrowers to purchase with a minimum required investment of 3.5% of the adjusted property value.

VA

Eligible Veterans, service members and certain surviving spouses may qualify for VA-backed purchase financing that requires no down payment in qualifying circumstances.

USDA

Qualified buyers purchasing eligible properties in eligible areas may be able to use USDA financing with no down payment.

Mortgage programs, qualification standards, down payment requirements, interest rates and terms vary. A qualified mortgage professional can explain the programs available based on your individual circumstances.

WHAT SHOULD YOU BUDGET FOR?

How Much Money Do I Need to Buy My First House?

Your down payment is only one part of the money involved in buying a home. Depending on the transaction and financing, buyers may need to plan for several expenses.

✓ Down payment — Determined by your financing and qualifications.
✓ Earnest money — Funds deposited as provided by your purchase contract.
✓ Inspections — Buyers typically pay directly for inspections they select.
✓ Closing costs — These may include lender, title and other transaction-related expenses.
✓ Prepaid expenses — Your lender may collect funds for items such as insurance, taxes and interest.
✓ Moving and homeownership costs — Moving, utilities, furnishings, maintenance and emergency savings matter too.
LOOK BEYOND THE LIST PRICE

What Actually Makes Up Your Monthly House Payment?

Two houses with the same price can have different monthly ownership costs. Before deciding what feels affordable, look at the complete estimated payment.

✓ Mortgage principal
✓ Mortgage interest
✓ Property taxes
✓ Homeowners insurance
✓ Mortgage insurance when applicable
✓ HOA dues when applicable

A great question to ask your lender:
"What would my estimated TOTAL monthly housing payment be on this property?"

DOWN PAYMENT & CLOSING COST ASSISTANCE

Are There First-Time Home Buyer Programs in Missouri and Kansas?

Yes. Homebuyer-assistance programs may be available, but eligibility can depend on income, household size, purchase price, property location, mortgage program and other requirements. Funding and program rules can change.

MISSOURI HOMEBUYERS

Missouri Housing Development Commission

The Missouri Housing Development Commission, commonly known as MHDC, offers homebuyer programs through participating certified lenders.

✓ First Place is designed for qualifying first-time homebuyers and qualified Veterans and offers mortgage financing with an option for down-payment and closing-cost assistance.
✓ Next Step provides another assistance option and can serve qualifying first-time and repeat buyers with different income limits.

MHDC program requirements, assistance amounts, rates, income limits and purchase-price limits can change. Verify current program information with MHDC and a participating lender.

KANSAS HOMEBUYERS

Kansas First-Time Homebuyer Assistance

Kansas Housing Resources Corporation administers a First Time Homebuyer program using federal HOME funds that may provide eligible buyers with assistance toward down payment and closing costs.

However, the statewide KHRC First Time Homebuyer program does not operate in Johnson County or within the city limits of Kansas City, Topeka, Lawrence or Wichita because those areas administer their own federal HOME funds.

That distinction matters for Kansas City metro buyers considering communities such as Overland Park, Olathe, Lenexa, Shawnee, Leawood or Kansas City, Kansas. Ask your lender what assistance programs are currently available for the exact location where you plan to purchase.

CREDIT & QUALIFICATION

What Credit Score Do You Need to Buy a House?

There is no single credit score that applies to every mortgage and every lender.

Mortgage programs have different guidelines, and lenders may have their own additional underwriting requirements. Your overall credit profile can also affect the financing choices, mortgage insurance and interest rate available to you.

Before and During Your Mortgage Application

✓ Continue paying bills on time.
✓ Avoid unnecessary new credit accounts.
✓ Talk with your lender before financing a vehicle or making another large purchase.
✓ Keep financial documentation available for your lender.
✓ Ask before making unusual or large transfers between accounts.
BEFORE THE HOME SEARCH GETS SERIOUS

Should You Get Pre-Approved Before Looking at Homes?

Talking with a lender early can make your home search more useful because you can better understand the financing and estimated payment associated with different price ranges.

Remember that the maximum amount a lender may approve and the payment you personally feel comfortable carrying are not necessarily the same number.

What You May Qualify For

Your lender evaluates your financial information according to the mortgage program and applicable underwriting standards.

What You Want to Spend

Your personal budget should leave room for savings, maintenance, vehicles, travel, entertainment and the rest of your financial life.

ONE METRO • TWO STATES

Should You Buy Your First Home in Missouri or Kansas?

There isn't one correct answer for everyone. Kansas City crosses the Missouri-Kansas state line, and buyers frequently compare communities on both sides.

Rather than choosing only by state, compare the specific communities and properties that fit your needs.

✓ Home prices and available inventory
✓ Property taxes and ownership costs
✓ Home age and architectural style
✓ Lot size and neighborhood characteristics
✓ Commute and transportation
✓ New construction versus established neighborhoods
✓ Your own lifestyle and long-term plans
EXPLORE THE KANSAS CITY METRO

Where Can First-Time Buyers Look Around Kansas City?

The right community depends on your price range, preferred housing style, commute and priorities. Buyers often compare multiple areas before narrowing their search.

Kansas City, MO
Independence
Blue Springs
Lee's Summit
Raytown
Liberty
Raymore
Belton
Kansas City, KS
Overland Park
Olathe
Lenexa
Shawnee
Gardner
AFTER YOUR OFFER IS ACCEPTED

What Inspections Should a First-Time Kansas City Buyer Consider?

Inspection needs vary by property. Age, condition, location, utility systems and construction can all affect which inspections or specialist evaluations make sense.

General Home Inspection
Sewer Scope
Termite / Wood-Destroying Insects
Radon Testing
Roof Evaluation
Structural / Foundation Evaluation
Septic System
Well / Water Quality

Not every inspection is appropriate for every property. Qualified inspectors and applicable specialists should evaluate issues within their professional areas.

DON'T FORGET NEW HOMES

Can a First-Time Buyer Buy New Construction?

Yes. First-time home buyers are not limited to resale homes.

Depending on location and budget, Kansas City buyers may find completed inventory homes, houses currently under construction, opportunities to choose certain finishes or homesites, or build-from-plan and custom-home options.

AVOID UNNECESSARY SURPRISES

Common First-Time Home Buyer Mistakes

✕ Starting the home search before understanding financing. Knowing your approximate price and payment range can make your search much more productive.
✕ Thinking only about the down payment. Closing expenses, inspections, moving costs and emergency savings should also be considered.
✕ Using the maximum loan approval as your personal budget. What you qualify to borrow and what you comfortably want to spend can be different.
✕ Making a large financed purchase before closing. New debt can affect mortgage qualification.
✕ Focusing only on listing photos. Layout, location, condition, mechanical systems and future ownership expenses matter too.
✕ Expecting every feature on your wish list. Separate true requirements from features you would simply enjoy having.
PROFESSIONAL BUYER REPRESENTATION

What Does a Buyer's Agent Do for a First-Time Home Buyer?

A buyer's agent can help you navigate the process from your initial search through closing.

✓ Help define your property search.
✓ Arrange showings and help evaluate properties.
✓ Provide available market and comparable-sales information.
✓ Prepare and explain real estate documents within the agent's professional scope.
✓ Negotiate according to your instructions.
✓ Help coordinate inspections, financing, title work, contractual deadlines and closing.

Buyer-agent services, duties and compensation should be discussed and documented in the applicable written buyer representation agreement.

KANSAS CITY FIRST-TIME BUYER FAQ

Frequently Asked Questions

Who qualifies as a first-time home buyer?

It depends on the mortgage or assistance program. Some programs may consider you a first-time buyer if you have not owned a principal residence during a specified previous period, even if you owned a home earlier in life. Check the definition used by the particular program.

Can I buy a house with less than 20% down?

Yes. Many qualified buyers use mortgage programs requiring less than 20% down, and certain qualifying buyers may be eligible for financing that does not require a down payment.

Is FHA only for first-time home buyers?

No. FHA-insured mortgages are not limited to first-time home buyers. Borrowers must meet the applicable FHA and lender requirements.

Can a seller help pay a buyer's closing costs?

Seller concessions toward allowable buyer costs may be negotiated in some transactions, subject to the purchase agreement and applicable mortgage-program limits. Market conditions and the strength of the overall offer can affect whether requesting concessions makes sense.

How long does it take to buy a house?

There is no single timeline. Finding the right property could take days or months. Once under contract, timing depends on the agreement, financing, inspections, appraisal, title work and other transaction requirements.

Should I use all of my savings for the down payment?

Not necessarily. Buyers should also think about closing expenses, moving, repairs, furnishings, maintenance and maintaining adequate savings after the purchase.

Can I buy a house if I have student loans?

Student loans do not automatically prevent someone from qualifying for a mortgage. Lenders evaluate required debt payments together with income, credit and other financial factors under the applicable mortgage guidelines.

Can I buy a house while I have a car payment?

Potentially. A vehicle payment is one of the recurring debts a lender considers when evaluating your finances and mortgage qualification.

Should I talk with a Realtor or lender first?

Either can be a reasonable starting point. A real estate agent can explain the buying process and help connect you with mortgage professionals, while speaking with a lender helps establish your financing options and realistic price range before you seriously shop.

Is it cheaper to buy a house than rent?

Not automatically. The comparison depends on home prices, rent, interest rates, taxes, insurance, maintenance costs, transaction expenses, expected ownership period and your individual financial situation.

Do first-time home buyers need a home inspection?

Inspection decisions depend on the property and contract. Inspections can provide important information about a home's condition and may identify issues that are not obvious during a showing.

Can first-time home buyers purchase a fixer-upper?

Yes, but the financing, property condition, renovation costs and buyer's ability to manage repairs should all be considered. Some properties may not qualify for certain traditional mortgage programs in their current condition.

Can I buy a newly built house as my first home?

Yes. First-time buyers may purchase completed new construction, homes already being built or other new-home opportunities if the property and financing fit their situation.

YOUR STARTING POINT

First-Time Home Buyer Checklist

□ Review your monthly budget.
□ Review your credit and financial accounts.
□ Determine how much cash you want to keep in savings after purchasing.
□ Talk with a mortgage professional.
□ Ask about available down-payment or closing-cost assistance.
□ Choose a buyer's agent.
□ Identify your preferred communities.
□ Separate must-have home features from nice-to-have features.
□ Create a focused MLS property search.
KC'S HOME TEAM

Buy Your First Home With Sellstate Heartland Realty

Sellstate Heartland Realty helps first-time home buyers throughout the Kansas City metro understand the process, compare communities, evaluate properties and navigate the steps from financing and home search through inspections, appraisal, title and closing.

Our agents work with home buyers throughout Missouri and Kansas and can help build a property search around your budget, preferred locations, home needs and long-term plans.

You don't have to be ready to make an offer tomorrow. Whether you're trying to determine if you can qualify, figuring out how much money you may need, planning several months ahead or ready to start touring homes, the first step is getting good information.

YOUR FIRST HOME STARTS WITH A FIRST STEP

Thinking About Buying Your First Kansas City Home?

Start by understanding your financing, your options and the areas that fit your goals. Sellstate Heartland Realty can help you build a plan from there.

Sellstate Heartland Realty
KC's Home Team in Real Estate
19310 E 50th Ter S, Suite E
Independence, MO 64055

This page is provided for general educational purposes and is not mortgage, financial, legal, tax or inspection advice. Mortgage programs, rates, assistance programs, income limits, purchase-price limits, funding and eligibility requirements can change. Buyers should consult appropriate licensed professionals, lenders and program administrators regarding their individual circumstances.