Looking to buy a home in Kentucky?
Here are 10 insider mortgage facts that give you an edge when applying for FHA, VA, USDA, or Conventional home loans in 2025.
If you’re buying a home in Kentucky, understanding how mortgages work can give you a real edge. Whether you’re a first-time buyer or a repeat homeowner, these 10 insider facts can save you money, stress, and time during the mortgage process.👇
1. Mortgage Rates Change — Sometimes Daily
Mortgage rates move up and down throughout the day, just like the stock market. The rate you see in the morning might not be available in the afternoon.
👉 Pro Tip: If you’ve found your dream home and your loan officer quotes you a solid rate, consider locking it in immediately before market shifts erase your savings.
2. Every Lender Charges Different Fees
Not all lenders price their loans the same. Rates, origination fees, discount points, and closing costs can vary widely.
👉 Best Practice: Get at least three loan estimates to compare side-by-side. Don’t just shop rate — compare total cost.
3. Your Loan Might Be Sold — And That’s Normal
It’s common for lenders to sell your loan to another bank or servicer. This helps lenders free up capital to issue more loans.
👉 What to Watch: Always read your mail and verify who’s collecting your payment. The terms of your loan don’t change when it’s sold.
4. Your Middle Credit Score Is What Counts
Lenders pull three credit scores — one each from Experian, Equifax, and TransUnion. Your middle score determines your qualification and rate.
👉 Important: Free credit scores from apps or websites use different models and may not match what mortgage lenders see.
5. You Can Refinance Anytime — But That Doesn’t Mean You Should
You can refinance whenever you like, but it only makes sense if it benefits your long-term financial goals.
👉 Ask Yourself: Are you lowering your payment, shortening your term, or pulling cash out for home improvements? If the math works, refinance. If not, wait.
6. You Can Buy a Home Again After a Foreclosure
A past foreclosure doesn’t disqualify you forever. Each loan type has its own waiting period:
-
FHA: 3 years
-
VA: 2 years
-
Conventional: 7 years
👉 Exception: You may qualify sooner if you can document an uncontrollable hardship (job loss, major illness, etc.).
7. Good Credit = Better Mortgage Rates
High credit scores don’t just open more doors — they get you better pricing.
👉 Action Step: Keep your balances below 30% of your limits, pay on time, and avoid new credit inquiries before applying. The stronger your credit, the more leverage you have to negotiate closing costs.
8. Know Your APR (Annual Percentage Rate)
Your interest rate and your APR are not the same.
-
Interest Rate: Cost of borrowing the money
-
APR: The true cost, including lender fees, points, and mortgage insurance
👉 Smart Move: Always ask for a breakdown of what’s included in the APR so you know where your money is going.
9. You Can Reduce Your Closing Costs
Closing costs can be negotiated.
👉 Options:
-
Ask the seller for a credit
Ready to Get Started?
Joel Lobb | Kentucky Mortgage Loan Officer
Helping Kentucky Families Since 2002
FHA | VA | USDA | KHC | Conventional
502-905-3708
911 Barret Ave., Louisville, KY 40204Joel Lobb - Mortgage Loan Officer
NMLS Personal ID: 57916 | Company NMLS ID: 1738461
Kentucky Mortgage Loans Only | Equal Housing Lender
Important Disclaimers:
This website and content are not endorsed by the FHA, VA, USDA, or any government agency. All information is for educational purposes only and does not constitute financial advice.
Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rates and program terms are subject to change without notice. Mortgage, home equity and credit products are offered by lenders who are licensed by the states in which they operate. Other restrictions and limitations apply.
Visit www.nmlsconsumeraccess.org to verify licensing and credentials.
Equal Housing Opportunity
Ready to Get Started?
🏠 10 Mortgage Facts
Every Kentucky Homebuyer Needs to Know
