Dos and Don’ts For First-Time Home Buyers

September 14, 2022 by McGowan Mortgages

First-time home buyers may feel overwhelmed because they have a lot of choices to make along the journey, including selecting a buyer’s agent, a loan officer, and a loan program. But purchasing a home can be easier than you think. If you are well-prepared, you will have a significant advantage over other buyers, you will be able to compete successfully, and you will have peace of mind during the process.

If this is your first time purchasing real estate, it is in your best interest to begin with the basic suggestions that follow regarding things you should and should not do.

Tips For First-Time Home Buyers

Verify the Status of Your Credit. The majority of credit scores can be accommodated by the available financing programs. Still, as a first-time home buyer, the higher your credit score, the better bargain you will receive. Ensure your credit is in excellent standing before starting the home loan application process by settling your bills on time, keeping your credit lines’ balances low by not adding to them, and delaying the closure or opening of any new accounts until after the loan application process has been finished.
Obtain Sufficient Homeowner’s Insurance. Your lender will require homeowner’s insurance, so if you don’t know where to begin, ask your buyer’s agent or loan officer for suggestions. They can connect you with insurance brokers they commonly work with so that you can get a reasonable deal on your coverage. As a first-time home buyer, you should always ask lots of questions about any business you choose. Sometimes you will save money if you decide to bundle your home and car insurance, so look into the alternatives for that as well.
Don’t Spend All Your Savings. Many costs can arise when purchasing a new home. After your loan is closed, you’ll want to be sure you have sufficient savings and money set aside for a rainy day. It’s essential to leave yourself with some money in the bank just because you might not know what to anticipate after closing on a home.
Avoid Looking For Homes Before Receiving Pre-Approval. Many agents may need a pre-approval letter before they start showing you homes because they want to ensure that you can afford the homes you are looking at. Getting this out of the way early on will help your first-time home buyer financing process run more smoothly after you are formally under contract, which is a smart idea if you’re a first-time home buyer.

Your Team at McGowan Mortgages is Here For You

Finding a reputable buyer’s agent and loan officer to assist you with the process and answer your questions can make the difference between a difficult and simple home purchasing process.

If you want to know about the best home loan in Kansas, don’t hesitate to contact McGowan Mortgages. Homebuyers in Kansas City and all around Missouri have benefited from our expertise in home loans, which is why we’re committed to ensuring that your home purchase is top-notch. Call us now at (816) 631-9687 so that we can do the same for you.

Mortgage Preapproval: How It Will Affect Your Home Purchase

August 30, 2022 by McGowan Mortgages

Real estate agents will often recommend that their clients apply for a mortgage preapproval instead of looking for homes without it. A preapproval means that you are ready to get serious about homeownership, and it is an essential step before trying to purchase a property. Before applying for a preapproval, though, it’s important to know what you’re getting into. Preapprovals generally only last for 90-120 days, and the specific duration will depend on the lender. Here’s what you need to know about finding the financing needed when buying a home.

What’s the Use of a Mortgage Preapproval?

When you’re preapproved, a lender says they’re willing to lend you a certain amount of money to cover your home purchase. You’re effectively guaranteed you can buy as long as you’re ready to accept the terms set forth on the preapproval letter. It means you can shop with confidence, knowing you’re not going to find something you love but can’t afford or get the money you need to make an offer.

Why Should You Get One?

Instead of spending your time looking at properties only to find out you can’t actually afford them or having your heart set on one deal only to realize you couldn’t actually get a mortgage. Preapproval is a way of avoiding disappointment. It allows you to narrow down exactly what you want, make an offer, and be confident it will be accepted. It’s less work, and it saves everyone time.

How Long Is a Preapproval Valid?

Preapprovals can last anywhere between 90-120 days so it’s important to know how long your preapproval letter will be valid. Mortgage preapproval is only suitable for a certain amount of time, and after that, you’ll have to go through a full mortgage application process if you want to continue looking for and buying a home. The good news is that you can go through the preapproval process multiple times.

What Happens After It Expires

If your preapproval expires, you won’t have to start from scratch. The same lender can refresh a few details on your file and issue another preapproval valid for another 90-120 days. We will adapt and make the process as quick and simple as possible.

Kansas City Mortgage Broker

A mortgage preapproval can definitely help ease some stress throughout the homebuying process. However, it doesn’t mean you should start writing checks. You want to know exactly how much you can afford and if it will cover your home purchase. It’s a huge step in buying a house, but it’s just one step. Don’t make a final decision without getting a full preapproval. Getting preapproved for your mortgage plan is a crucial step in the homebuying process. It can take some time, but it’s an important step to make sure your offer is going to be accepted. It takes some work, but it can make the rest of your home-buying process much smoother. If you require a reliable mortgage lender in Kansas City and beyond, you have come to the right place! We’ll help you get the home of your dreams so call us today at (816) 631-9687 and our team will give you a free quote and assist with any questions.

What are the Major Benefits of Getting a USDA Loan?

August 2, 2022 by McGowan Mortgages

Did you know you can buy a property with no money down? Though it may appear to be too good to be true, the United States Department of Agriculture Guaranteed Rural Development Loan, commonly known as a UDSA or rural development lending, assists potential homebuyers in becoming homeowners by providing various benefits not available via other loan programs.

4 Major Benefits of Getting a USDA Loan

Here are five ways a USDA loan might help you buy a house.

No Down Payment Required. The fact that the USDA loan program allows homebuyers to achieve 100 percent financing is undoubtedly the greatest benefit of using a USDA loan. This alleviates the biggest hurdle most first-time buyers face which is gathering enough funds for a down payment. In comparison, borrowers are required to supply a minimum 3.5 percent down payment for an FHA loan and 3 or 5 percent for a conventional loan.
Borrower Qualifications. Most traditional lenders want at least a 640 credit score, but you’ll need something closer to 720 to qualify for the lowest interest rates. There is no minimum credit score for USDA loans, however, you must have a score of 640 or above to use the USDA’s automated underwriting system.
Private Mortgage Insurance (PMI) with a Low Monthly Payment. Private mortgage insurance is needed for any loan with a loan-to-value of less than 80%, regardless of the lending program. So, if a borrower takes advantage of the USDA loan’s no-down-payment option, they must pay monthly mortgage insurance. The USDA loan has the lowest private mortgage insurance rate of any lending program, and it does not change depending on your down payment, as it does with conventional financing. The USDA loan’s yearly PMI cost is now 0.35 percent of the loan’s remaining principal amount.
No Prepayment Penalties. In addition to the low-down-payment and low-interest rate perks of USDA home loans, the loan also has no prepayment penalties, allowing borrowers to take advantage of interest rate changes, home price fluctuations, and other changes without facing fees.

The Bottom Line

Homeowners who might be looking to sell their home in the near future can take advantage of the USDA loan program’s no prepayment penalties. This is a program many consumers should consider, especially first-time homebuyers who lack the funds necessary to make a down payment.

Contact McGowan Mortgages Today!

Are you searching for home loans in Kansas City or beyond? McGowan Mortgages’ home loan specialists ensure that your investment, home purchase, or refinancing experience in Missouri and beyond is exceptional. Call us today at (816) 631-9687.

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Trena

18:09 31 Aug 22

Derek is amazing! I've worked with him on a refinance at his previous company, I recommended him to multiple friends who also chose to work with him, and then I reached out to him again for my recent home purchase with his new company. He and his team did an outstanding job dealing with my unique situation, found a way to make it work, and then kept in constant contact with the agents (both buyer's and seller's) to ensure that things stayed on schedule and moved smoothly. They're awesome, and I highly recommend them to anybody in the market for a purchase or refinance!

Kimaada Ellison

18:35 22 Aug 22

As a first time home buyer with very limited knowledge about this entire process, this company and all of its staff have really made me feel comfortable about asking questions and learning about how everything works. Elijah has fielded many questions from me and each time was able to rationally explain everything to me in layman's terms that helped me understand. I am so pleased to have come across this organization and would recommend them to any potential home buyer without hesitation. Keep up the great work guys.- KE

Sam Kolthay

16:48 15 Aug 22

This is the second time I've worked with Derek on buying a house, and I know I'd use him for a third!Derek and his team work tirelessly to get the loan across the line as quickly as possible and at the best rate.I highly recommend trusting Derek with your loan needs!

nathan denham

20:17 07 Aug 22

Being involved with Real Estate for many years my clients have used many different lenders. There have been good ones and bad ones but McGowan Mortgage is different than the rest and always delivers. I highly recommend you use McGowan Mortgage for your financial lending needs.

Rachel Diebold

00:18 29 Jul 22

Tarek Jebali

02:08 22 Jul 22

Derek is a true professional; knowledgeable, hard worker and he is here when you need him.Thank you again for everything and for hanging in there with me. I highly recommend him for your mortgage needs

Steve Lopez

02:06 13 Jul 22

First time buying a home couldn’t have choose anyone better. Super helpful and have a wonderful team that will make sure all your questions get answers. Definitely recommend

Jared Pfeiffer

13:39 18 May 22

I have worked with Derek and his team on multiple purchases. His attention to detail, the speed in which he works and his collaboration makes him at the top of his industry in my opinion.Looking forward to continuing to work with him in the future.

Annie

00:44 02 May 22

artbycins

03:04 01 May 22

Eric L

14:41 29 Apr 22

Derek is awesome!! His knowledge of the mortgage industry is incredible. Every question I’ve had for him he gives me an easy-to-understand yet in-depth answer. We’re working on a refi for our current home and I’ll definitely reach back out once we’re ready to purchase our next home! Thanks Derek!!

Steve Zebley

13:56 29 Apr 22

Derek McGowan is the best!

Elijah Dixon

00:10 29 Apr 22

Derek and his team are extremely knowledgeable. The level of communication and use of technology is second to none ....

Sam Tracy

20:02 28 Apr 22

Derek helped my wife and I buy our first house and was so great at walking us through the entire process, making sure we understood everything. He was always available to answer all of our questions and was impressively quick on getting paperwork signed and submitted. Put simply, he made everything easy. So glad we worked with Derek and he will be our first call when we look at moving again!

Collin Joiner

18:23 28 Apr 22

Derek is absolutely fantastic! Not only did he make financing my new home completely seemless, but he made himself available practically 24/7. Not like your usual broker that claims they can always be reached and has your best interest at heart, but he is genuine, up front, and when you pick up the phone to call or text him... he actually answers or gets right back with you! I did my initial loan with him, when rates dropped I did my refi with him, I also got my ex to finance through him for her first home. And through each interaction he stayed consistent in his approach and true to the values he promises. If it's Derek or associated with Derek, I promise you can't beat it!! He's the best!

Gabe Buckner

12:28 27 Apr 22

Really smooth process from start to finish! Incredibly resourceful in every aspect. Will use again.

Todd Minear

12:11 27 Apr 22

Derek is professional, responsive and always friendly. He always delivers. Highley recommended!

Tammy Walker

10:28 27 Apr 22

Derek was absolutely great in helping us refinance our mortgage. He walked us through everything and was always ready to answer any questions we had. We would definitely use him again.

Diamon Collins

05:47 27 Apr 22

Very knowledgeable and friendly! We were able to take the helpful information given to choose the best option for our home buying needs! Highly recommended!

Kc Thizz-N-Vision Tv

05:10 27 Apr 22

The Wandering Squirrel Photography

04:31 27 Apr 22

james ellis

04:29 27 Apr 22

The communication and overall process was awesome. Zero issues and had me ready to close 2 weeks early. Highly recommend.

Markus Marrs

Derek and his team made sure to do the best by me and my family!

Kelli Harpe

01:27 24 Apr 22

Derek and his crew have been ultra responsive since day 1. Phone calls are promptly returned and questions answered with confidence. Excellent customer service.

Marria Tran

23:58 23 Apr 22

Derek and the McGowan Mortgage Team were top-notch from start to finish. Buying a home for the first time was incredibly overwhelming and stressful but Derek and his team educated us through the entire process. They went above and beyond to help us with questions and concerns that were outside of their control, making us feel like we were their #1 priority. Exceptional communication and promptness on our closing date. Derek was very knowledgeable with understanding the market conditions and did everything to make sure we had the best rate possible! We are lifelong customers and would highly recommend to anyone and everyone! ⭐️

Marissa jacobs

22:40 23 Apr 22

Derek has been truly wonderful!

Nate Lickteig

13:14 16 Mar 22

Derek and the team at McGowan Mortgage are incredible. They all were very diligent to walk us through the process from the application up through closing day. They were consistently available to answer questions with multiple avenues to call and text to get quick answers. They were meticulously thorough in showing all of the factors determining our rates and how they were getting us the best available option. The tools that were provided to help calculate our estimated payments were specific to our loan and were fantastic to pin point what the mortgage payments would look like for each of the homes which we considered. We shopped with one other lender and between the rate offers and level of communication it was an absolute no-brainer to work with Derek and the team at McGowan Mortgage.