Finding a new place to live can be quite an adventure. Now, if you’ve decided about making Kentucky your new home state, you have to be ready for this new journey you’re about to start.
The state has a lot to offer existing and potential inhabitants, from world-famous horse racing to boundless natural beauty and a thriving bourbon sector. So if you’re considering relocating to Kentucky, now is the time to weigh your alternatives and begin your search for the ideal area to live.
Below is everything you need to know about buying a home in Kentucky, including real estate advice, listings, and market updates.
Requirements for Buying a House
The first thing you need to have decent credit. When you apply for a mortgage, the lender wants to know that you will be able to pay your mortgage. Pulling your credit history to examine how you’ve handled debt in the past is one technique to assess the risk. A credit score of 620 or more will usually qualify you for a conventional loan.
Following that, you must have a good debt-to-income ratio. Lenders use this to know how much of your monthly income goes toward debt payments.
You have to show financial documentation next. To ensure that you have the means to repay your monthly mortgage bill, lenders will request your most current pay stubs, W-2 forms, bank accounts, and tax filings.
Before you’re asked for a down payment, there will be an appraisal. Your lender will check to see whether you’re borrowing more money than the house is worth.
Afterward, you’ll need to put down a set proportion of the home’s listing price as a down payment of roughly 3 percent for a conventional loan and 3.5 percent for an FHA loan when you close on a home loan.
Below are the things you should know before buying a house in Kentucky. Fortunately, the state’s laws make it simple to purchase real estate. Still, you should be informed of the following crucial points.
Enjoy Low Property Taxes and Dual Agencies
Kentucky homeowners save a lot of money on property taxes, which are only $1,257 a year on average. This is around half the national median. The property tax rate in the state is just 0.83 percent on average.
Kentucky is also one of the few states that allow dual agency, meaning that the same agent can represent both buyers and sellers.
Expect a 30- to 45-Day Escrow
When a seller accepts your home-buying offer, you’ll usually put earnest money into an escrow account. Your funds will be stored in this account until the sale is completed. In Kentucky, the escrow process normally takes 30 to 45 days.
Anticipate Seller Disclosure Reports
Before a purchase agreement is finalized in Kentucky, home sellers must file a detailed property condition disclosure. To reveal faults that could reduce the home’s value, this form includes questions concerning the home’s principal systems, building structure, property borders, and environmental concerns.
Your Experts at American Mortgage Solutions
The best time to buy a house in Kentucky is usually in the winter. The majority of people sell their homes in the spring and summer; therefore, sellers who list their properties in the winter are more likely to do so out of necessity. This is why the greatest time to get a bargain is usually in the winter.
If you’re looking for a home loan in Louisville, be sure to check out the services of American Mortgage Solutions. We have financed home buyers’ and homeowners’ dreams and are proudly licensed in Kentucky and other major states. Call our Louisville, KY office now at (502) 327-9770.