Demystifying Closing Costs in Kentucky (2025 Homebuyer’s Guide) | FHA, VA, USDA, KHC Programs Explained

Kentucky Closing Costs Explained

No jargon – just real numbers. Watch Joel Lobb break down everything you need to know about closing costs in Kentucky and how to save thousands before you close.

Summary: Closing costs in Kentucky typically range 2 – 5 % of the loan amount. FHA, VA, USDA and Conventional loans all handle these costs differently. 2025 KHC programs may cover part or all of them for qualified buyers.

For complete details, see the full article on mylouisvillekentuckymortgage.com.

Joel Lobb – Mortgage Loan Officer, EVO Mortgage
NMLS #57916 | Company NMLS #1738461 | Equal Housing Lender
kentuckyloan@gmail.com | (502) 905-3708

Kentucky Mortgage Closing Costs Explained

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Kentucky Mortgage Closing Costs Explained (2025 Homebuyer Guide)

Buying a home in Kentucky comes with one final step before you get your keys — closing costs. These are the fees and services required to finalize your mortgage, covering everything from the appraisal to title insurance. Whether you're purchasing with an FHA loan, VA loan, USDA Rural Housing loan, KHC program, or a Conventional mortgage, understanding these costs will help you budget and avoid surprises at the closing table.

Quick Answer: Kentucky homebuyers can expect closing costs ranging from 1% to 3% of the loan amount. For a $300,000 home, that means $3000–$9000 depending on loan type and lender.

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💰 What Are Mortgage Closing Costs?

Mortgage closing costs are the final fees and charges due at settlement for a home purchase or refinance. These costs cover third-party services like appraisals, title searches, insurance, inspections, and lender processing fees. Unlike your down payment, closing costs are separate — and they can add up quickly.

In Kentucky, the total amount varies based on several factors:

• Loan type (FHA, VA, USDA, Conventional, KHC)
• Home price and location
• Down payment percentage
• Credit score and loan approval timeline
• County and local recording fees
• Lender and service provider choices

📋 Common Closing Costs in Kentucky (2025)

Here's a breakdown of typical closing costs you'll encounter as a Kentucky homebuyer:

Fee Type	Typical Cost Range	Who Pays?
Appraisal Fee	$500–$800	Borrower (upfront)
Home Inspection	$300–$700	Borrower (optional but recommended)
Credit Report Fee	$50–$150	Borrower
Loan Origination Fee	0.5–3% of loan	Borrower
Title Search & Insurance	0.5–1% of home price	Borrower (varies by county)
Recording Fees	$40–$200	Borrower
Prepaid Taxes & Insurance	6-12 months escrow	Borrower
FHA/VA/USDA Funding Fees	0%–3.6% of loan	Borrower (can be financed)
Homeowners Insurance (1st year)	$800–$3000	Borrower
HOA Fees (if applicable)	$100–$500	Borrower

🏡 Who Pays Closing Costs in Kentucky?

While most closing costs are paid by the buyer, there are several ways to reduce your out-of-pocket expenses. Here's how it works:

Buyer Pays (Standard)

As the borrower, you're responsible for most closing costs. However, you have options to reduce the burden.

Seller Concessions

The seller can contribute to your closing costs through what's called a "seller concession" or "seller credit." The maximum amount varies by loan type:

• FHA Loans: Up to 6% of the home purchase price
• VA Loans: Up to 4% of the home purchase price
• USDA Loans: Up to 6% of the home purchase price
• Conventional Loans: 3–9% depending on down payment (typically 3% with 25% down, up to 9% with 3% down)
• KHC Programs: Often allows up to 3-6% seller contribution

💡 Pro Tip: If you're pre-approved for a home, ask your real estate agent to negotiate seller concessions during the offer phase. Sellers are often willing to contribute if it means a smoother sale!

Lender Credits

Another way to reduce closing costs is through a lender credit. This works like this: you accept a slightly higher interest rate in exchange for the lender paying some or all of your closing costs. This is particularly helpful if you don't have enough cash at closing but plan to stay in the home for many years.

Financing Costs Into the Loan

With FHA, VA, and USDA loans, you can roll certain upfront fees (like FHA mortgage insurance or VA funding fees) directly into your loan amount. This reduces the cash you need at closing, though it does increase your monthly payment slightly.

🔍 Understanding Your Loan Estimate & Closing Disclosure

The federal government requires lenders to provide clear, standardized disclosures about your loan costs. Here's what you need to know:

Loan Estimate (Due Within 3 Business Days)

After you submit your mortgage application, your lender must provide a Loan Estimate within three business days. This document outlines:

• Loan terms and interest rate
• Monthly principal and interest payment
• Estimated closing costs (broken down by fee)
• Comparison of different loan options

Review this carefully and compare it with estimates from other lenders. Under RESPA (Real Estate Settlement Procedures Act), many of your closing costs cannot increase by more than 10% from the Loan Estimate to your final closing.

Closing Disclosure (Due 3 Days Before Closing)

Before your closing appointment, you'll receive a Closing Disclosure listing your final costs. This is your chance to verify that everything matches your Loan Estimate. You have the right to review this document for at least three business days before signing.

⚠️ Important: Don't skip reviewing the Closing Disclosure. Errors happen. If you spot a discrepancy between your Loan Estimate and Closing Disclosure, contact your lender immediately to resolve it before closing day.

🎯 Kentucky Closing Costs by Loan Type

FHA Loans (First-Time Homebuyers)

FHA loans are popular with Kentucky first-time homebuyers because they allow lower down payments (3.5%) and more flexible credit requirements. However, FHA comes with upfront and annual mortgage insurance premiums:

• Upfront FHA Mortgage Insurance: 1.75% of loan amount (can be financed)
• Annual Mortgage Insurance: 0.45–0.80% annually (added to monthly payment)
• Total FHA Closing Costs: 1–7% of loan amount

VA Loans (Veterans & Active Duty)

VA loans offer excellent benefits for military members and veterans, with no down payment required and no mortgage insurance. Instead, there's a VA funding fee:

• VA Funding Fee: 2.3% of loan (first-time use, no down payment) — can vary based on service and down payment
• Total VA Closing Costs: 1-4% of loan amount

USDA Rural Housing Loans (Rural Kentucky)

USDA loans are designed for rural Kentucky properties with zero down payment required:

• USDA Guarantee Fee: 1% of loan (upfront, can be financed)
• Annual Mortgage Insurance: 0.35% annually
• Total USDA Closing Costs: 1–6% of loan amount

Conventional Loans

Conventional loans don't have government insurance fees, making them attractive once you have a higher down payment and good credit:

• Loan Origination Fee: 0.5–1%
• Private Mortgage Insurance (PMI): 0.5–2% annually (if down payment < 20%)
• Total Conventional Closing Costs: 1–5% of loan amount

Kentucky Housing Corporation (KHC) Loans

KHC programs offer first-time homebuyers down payment and closing cost assistance:

• Down Payment Assistance: Up to $12,500
• Closing Cost Assistance: Often available
• Interest Rate: Competitive rates
• Total KHC Closing Costs: Can be significantly reduced with assistance programs

💡 How to Reduce Closing Costs in Kentucky

Here are proven strategies to minimize your closing costs:

1. Compare Multiple Lenders

Don't just accept the first offer. Get Loan Estimates from at least 3 lenders. Even small differences in origination fees and closing costs can save you hundreds or thousands of dollars. Under federal law, many costs have a 10% limit on increases from estimate to final, so comparing early pays off.

2. Negotiate Seller Concessions

In today's market, sellers are often motivated to negotiate. Work with your real estate agent to request seller concessions to cover your closing costs. Remember the limits for each loan type (FHA: 6%, VA: 4%, USDA: 6%, Conventional: varies).

3. Explore Kentucky Housing Corporation (KHC) Programs

KHC closing cost assistance programs can cover $0 to 100% of your closing costs depending on your income, credit, and the specific program. As a Kentucky first-time homebuyer, you may qualify for up to $12,500 in down payment assistance plus closing cost help.

4. Ask About Lender Credits

Some lenders will absorb closing costs in exchange for a slightly higher interest rate. Calculate whether this makes sense long-term. If you plan to stay in the home for 5+ years, a lower rate usually outweighs the higher closing costs.

5. Roll Fees Into the Loan

With FHA, VA, and USDA loans, you can finance certain upfront fees (funding fees, mortgage insurance). This reduces cash needed at closing but increases your loan amount and monthly payment.

6. Shop for Services

Your lender cannot force you to use specific appraisers, inspectors, or title companies. Get competitive quotes and choose the best value.

7. Close Before Month-End

Closing late in the month can reduce your prepaid taxes and insurance (escrow), which lowers immediate out-of-pocket costs.

📊 Closing Costs Breakdown Example

Scenario: $300,000 home purchase with FHA loan, 3.5% down payment ($10,500), $289,500 loan amount, 6.5% interest rate

Item	Cost
Appraisal	$650
Credit Report	$40
Loan Origination (0.75%)	$2,171
Title Search & Insurance	$1,200
Recording & Transfer Fees	$120
Upfront FHA Mortgage Insurance (1.75%)	$5,067
Homeowners Insurance (1 year)	$1,200
Property Taxes (prepaid, 2 months)	$1,500
TOTAL CLOSING COSTS	$11,948

With seller concessions up to 6% ($18,000), the seller could help pay a significant portion of these costs.

Ready to Get Started?

Get a personalized closing cost estimate and explore loan options that fit your budget.

Contact Joel Lobb, Kentucky Mortgage Broker

Specializing in FHA, VA, USDA & KHC Loans for Kentucky Homebuyers

📞 (502) 905-3708 | ✉️ kentuckyloan@gmail.com

→ Request Your Free Loan Estimate

NMLS #57916 | Equal Housing Lender

❓ Frequently Asked Questions

Can I negotiate closing costs in Kentucky?

Yes. You can negotiate with sellers through your real estate agent, ask lenders for credits or better terms, and shop around for services like appraisals and title insurance. Every dollar saved adds up.

Can I pay closing costs from my down payment savings?

No. Down payment and closing costs are separate. However, sellers can help via concessions, and lenders can offer credits. Additionally, FHA, VA, and USDA programs allow financing certain fees into the loan.

Are there any Kentucky-specific closing cost fees?

Kentucky counties have varying recording and transfer fees. Jefferson County (Louisville) fees differ from rural counties. Your lender will break these down in your Loan Estimate.

Can closing costs be rolled into my mortgage?

Yes, depending on your loan type. FHA, VA, and USDA loans allow you to finance upfront mortgage insurance and funding fees. Conventional loans typically don't allow this, but lender credits can help reduce upfront costs.

What if closing costs exceed my Loan Estimate?

Under RESPA, many closing costs cannot increase by more than 10% from your Loan Estimate to your Closing Disclosure. If you see major discrepancies, contact your lender immediately.

Does Kentucky have first-time homebuyer assistance?

Yes! The Kentucky Housing Corporation (KHC) offers closing cost assistance, down payment programs, and favorable rates for first-time buyers. You may qualify for $0 to $30,000+ depending on the program.

©2025 EVO Mortgage | Equal Housing Lender

Joel Lobb, Mortgage Loan Officer | NMLS Personal ID: 57916 | Company NMLS ID: 1738461

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This article is for educational purposes only and does not constitute a loan offer or commitment to lend. All programs subject to credit approval and applicable regulations.

Kentucky First Time Home Buyer Questions Answered:

What will my mortgage rate be?

We’ll begin with what always seems to be everyone’s number one concern, saving money. Similar to any other monthly payments you’re attempting to negotiate, it depends on a lot of factors. But we can at least clear up a few items to give you an idea of how things will go. Ultimately, the more risk you present to the mortgage lender, the higher your mortgage rate. So, if you have poor credit and come in with a low, down payment, expect a higher interest rate relative to someone with a flawless credit history and a large down payment. The higher interest rate is intended to compensate the lender for the potential of greater risk of a missed payment as data proves those with questionable credit and low down payments are more likely to fall behind on their mortgages. The property itself can also affect mortgage rate pricing – if it’s a condo or multi-unit investment property, expect a higher rate, all else being equal. Then it’s up to you to take the time to shop around, as you would any other important purchase. Two borrowers with identical loan scenarios may receive completely different rates based on shopping alone. And someone worse off on paper could actually obtain a lower rate than a so-called prime borrower simply by taking the time to gather several quotes instead of just one. For the record, a Freddie Mac study proved that home buyers who obtained more than one quote received a lower rate. There is no single answer here, but the more time you put into improving your financial position, shopping different mortgage lenders, and familiarizing yourself with the process so you can effectively negotiate, the better off you’ll be. And of course, you can keep an eye on average mortgage rates to get a ballpark estimate of what’s currently being offered.  To sum it up, compare mortgage rates as you would anything you buy, but consider the fact that you could be paying your mortgage for the next 30 years. So put in even more time!

How long is my mortgage rate good for?

Once you do find that magic mortgage rate, you’ll probably be wondering how long it’s actually good for. If you’re not asking that question, you should be because rates aren’t set in stone unless you specifically ask them to be. By that, we mean locking in the mortgage rate you negotiate or agree upon with the lender so even if rates change from one day to the next, your rate won’t. Otherwise, you’re merely floating your mortgage rate, and thereby taking your chances. Without a rate lock, it’s really just a rate quote.  Lenders will often charge a fee to lock in an interest rate. Rates can generally be locked in for anywhere from 15 to 90 days or longer, with shorter lock periods cheaper than longer ones. But pay attention to the expiration date of your lock, because you will need to close the loan before that date or you will have to renew the lock.

How do you calculate a mortgage payment?

At some point in the mortgage process, you’re going to be searching for a mortgage calculator to figure out your proposed payment.  You can see how monthly payments on mortgage loans are truly calculated using the real math, or you can simply find a payment calculator that does all the work and tells you nothing about how it comes up with the final sum.  Just make sure you use a mortgage calculator that considers the entire housing payment, including taxes, insurance, HOA dues, and so forth. Otherwise, you’re not seeing the complete picture.

What is a mortgage refinance?

As the name implies, refinancing simply means obtaining new financing for something you already own (or partially own, like real estate).  It’s kind of like a balance transfer where you move your loan from one lender to another to get better terms, except it’s a mortgage payoff.of your old mortgage loan for a new mortgage loan. If you currently have a rate of 6% on your mortgage, but see that refinance rates are now 4%, a refinance could make sense and save you a lot of money over time. You’d essentially have the lender pay off your existing loan with a brand-new loan at the lower interest rate. There is also the cash-out refinance, which allows you to tap into your home equity while also changing the rate and term of your existing mortgage. So, if you currently owe $200,000, but your home is worth $500,000, you could potentially take out $100k cash and your new loan amount would be $300,000. Your monthly payments may not even go up if interest rates are favorable, and you’d have that cash to use for whatever you wish. Be sure to use a refinance calculator or payoff calculator to help guide your decision, and consider the loan term, otherwise known as your expected tenure in the property

How much will my housing payment really be?

Like we mentioned in the related question above, be sure to factor in all the elements that go into a mortgage payment, not just the principal and interest payment that you often see advertised.  It’s not enough to look at P&I (Principal & Interest), you have to consider the PITI (Principal, Interest, Taxes and Insurance). And sometimes even the “A” (Homeowners Association Assessments).  If you don’t consider the full housing payment, including property taxes and homeowners insurance (and maybe even private mortgage insurance) you might do yourself a disservice when it comes to determining how much you can afford during the home financing process. You can check out my mortgage affordability calculator to see where you stand. Whether you have an escrow account or not, mortgage lenders will qualify you by factoring in taxes and insurance, not just your monthly mortgage payment.

When is the first mortgage payment due?

This depends on when you close your home loan and if you pay prepaid interest at  closing.  For example, if you close late in the month, chances are your first mortgage payment will be due in just over 30 days.  Conversely, if you close early in the month, you might not make your first payment for nearly 60 days. That can be nice if you’ve got moving expenses and renovation costs to worry about, or if your checking account is a little light.

What credit score do I need to get approved?

It depends what type of mortgage you’re attempting to get, and also what down payment you have, or if it’s a purchase or a refinance.  The good news is that there are a lot of mortgage programs available for those with low credit scores, including VA loans and FHA mortgages.  For example, the FHA goes as low as 500 FICO, Fannie and Freddie 620, and the USDA and VA don’t technically have a minimum credit score, though most lenders want at least 620/640. If you’re in good shape financially, a poor credit score may not actually be a roadblock. But you can save a lot of money if you have excellent credit via the lower interest rate you receive for being a better borrower. Simply put, loan rates are lower if you’ve got a higher credit score.

How large of a mortgage can I afford?

Here you’ll need to consider home values, how much you make, what your other monthly liabilities are, what you’ve got in your savings account, and what your down payment will be in order to come up with your loan amount. From there, you can calculate your debt-to-income ratio, which is very important in terms of qualifying for a mortgage.  This is a fairly involved process, so it’s tough to just estimate what you can afford or provide some quick calculation. There’s also your comfort level to consider. How much home are you comfortable financing? And don’t forget the property taxes and insurance, as well as routine maintenance costs, which can make your total housing obligations much more expensive!

Do I even qualify for a mortgage?

This is an important question to consider. Are you actually eligible for a mortgage or are you simply wasting your time and the lender’s?  While requirements do vary, most lenders require two years of credit history or clean rental history, and steady employment, along with some assets in the bank. As mentioned, if you are looking to purchase a new home, getting that pre-qualification, or better yet, pre-approval, is a good way to find out if the real thing (a loan application) is worth your while. However, even if you are pre-qualified or pre-approved, things can and do come up that turn a conditional approval into a denial letter, such as an undisclosed credit card, personal loan, auto loan, or pesky student loans. Many lenders will also verify employment and credit and income, prior to loan closing to make sure nothing has changed.  Simply, your loan is not 100% done until it funds.

Why might I be denied a mortgage?

There are probably endless reasons why you could be denied a mortgage, and likely new ones being realized every day. It’s a complicated business, really. With so much money at stake and so much risk to lenders if they don’t do their due diligence, you can bet you’ll be vetted pretty thoroughly.  If anything doesn’t look right, with you or the property, it’s not out of the realm of possibilities to be flat out denied. Those aforementioned undisclosed student loans or credit cards can also come back to bite you, either by limiting how much you can borrow or by pushing your credit scores down below acceptable levels. That doesn’t mean give up, it just means you might have to go back to the drawing board and improve your credit score, reduce some debts, or find a new lender willing to work with you. It also highlights the importance of preparation!

What documents do I need to provide to get a home loan?

In short, a lot of them, from tax returns to pay stubs to bank statements and other financials like a brokerage account if using assets from such a source. This process is becoming less paperwork intensive thanks to new technologies like single source validation, but it’s still quite cumbersome. You’ll also have to sign lots of loan disclosures, credit authorization forms, letters of explanation, and so on.  While it can be frustrating and time consuming, do your best to get any documentation requests back to the lender ASAP to ensure that you will close your home loan on time. And make sure you always send all pages of documents to avoid re-requests.

What type of mortgage should I get?

There are a lot of loan options, including fixed-rate mortgages and adjustable-rate mortgages, along with conventional loans and government loans, such as FHA and VA. While most borrowers just default to the 30-year fixed-rate mortgage loan, there are plenty of other loan programs available, and some may result in significant savings depending on your plans. For example, a 5/1 ARM might come with an interest rate 0.75% below a 30-year fixed, and it’s still fixed for the first five years, adjusting every year thereafter. You might want to start with the fixed-rate versus ARM comparison, then go from there. If you’re comfortable with an ARM, you can explore the many options available. If you know a fixed rate is the only way to go with a home loan, you can determine whether a shorter-term option like the 15-year fixed is in your budget and best interest. Also consider the FHA vs. conventional pros and cons to ensure you’ve covered all your bases if trying to decide between those two loan types.

How big of a down payment do I need?

That depends on a lot of factors, including the purchase price of the home, the type of loan you choose, the property type, the occupancy type, your credit score, and so on. There are still zero down mortgage options available in certain situations, including for USDA and VA loans, and widely available 3% and 3.5% down options as well.  In short, you can still get a mortgage with a relatively small down payment, assuming it’s owner-occupied and not a vacation home or investment property. Just make sure you can afford the higher monthly payments!

Do I need to pay mortgage insurance?

Good question. The answer coincides with down payment and/or existing home equity, along with loan type. Basically, you want to be at or below 80% loan-to-value to avoid mortgage insurance entirely, at least when it comes to a home loan backed by Fannie Mae or Freddie Mac. That means a 20% down payment or greater when purchasing a home, or 20%+ equity when refinancing a mortgage. However, for a FHA loan, mortgage insurance is unavoidable, regardless of the loan to value.

What are mortgage points? Do I need to pay them?

The choice is yours when it comes to points, though it does depend on how the lender. Are they discount points or a loan origination fee?  Points paid by you, that are for a lender origination fee do not reduce the interest rate. They are a fee to compensate the lender for their cost to originate the mortgage loan. Discount points will reduce the loan interest rate. For every point paid, there is a corresponding reduction in interest rate charged.  Of course, these points can be paid directly and out-of-pocket, or indirectly via a higher mortgage rate and/or rolled into the loan. This is part of the negotiation process, and also your preference.

What closing costs are negotiable?

Closing costs will be fees assessed by and paid to your lender and fees assessed by your lender but paid to a third-party. Many closing costs may be negotiable, including some third-party fees that you can shop for like title insurance. Closing costs refer to fees both paid to the lender as well as fees assessed and paid to a third-party provider.  If you look at your Loan Estimate (LE), and provided settlement Service Provider list, you’ll actually see which services identified which you can shop for. Then there are the loan costs, which you may be able to negotiate with some lenders. In some instances, you may not be charged an outright fee, because it will be built into the rate, which also may be negotiated at times. You have every right to go through each and every fee and ask what it is and why it’s being charged. And the lender should have a reasonable response.

How quickly can I get a mortgage?

This is an easier mortgage question to answer, though it can still vary quite a bit. In general, you might be looking at anywhere from 30 to 45 days for a typical residential mortgage transaction, whether it’s a mortgage refinance or home purchase. Of course, stuff happens, a lot, so it’s not out of the ordinary for the process to take up to 60 days or even longer. At the same time, there are companies (and related technologies) that are trying to whittle the process down to a couple weeks, if not less. So, look forward to that in the future!

Do I really need a 20% down payment to purchase a home?

A. No. There are several other loan options available that allow you to put as little as 5%, 3%, or even 0% down. Just keep in mind that a conventional home loan with less than a 20% down payment typically requires Private Mortgage Insurance (PMI). FHA loans will require mortgage insurance premiums regardless of the down payment. Mortgage Insurance protects the lender from losing money if you end up not being able to pay the loan.

When should I lock in my interest rate?

A. This answer differs depending on whether you’re purchasing or refinancing a home. But of course, either way, you want to obtain the lowest rate possible on such a large amount of money.  If you’re refinancing, your application has to be credit-approved before you can lock in your rate. If you’re shopping for a home, your application has to be credit-approved and the seller has accepted your offer before you can lock in your rate.  Then, you’ll need to decide if you want to lock in today’s rate or keep an eye on rates in the days that follow.  Be sure to understand any fees associated with the rates you see advertised — not all are created equal, so you want to pay attention to the Annual Percentage Rate (APR), not just the interest rate.

How long does my pre-approval last?

A. Pre-approvals on average are good from 60 to 90 days, at which time, if you haven’t put an offer on a home and submitted a loan application, you’ll need to get pre-approved again.

When I purchase a new home, what exactly, are closing costs, and how much should I expect to pay?

A. When you decide to buy a home, you’ll spend more than just your down payment. You’ll also pay for things like recording fees, wire fees, or escrow account, origination fees, upfront insurance premiums and any “points” you buy to lower your interest rate. These expenses are collectively called closing costs, and you can expect them to run you anywhere from 2% to 5% of the purchase price of your home.

What type of mortgage should I choose?

A. This is entirely unique to your financial situation, what you want to buy, how long you plan to live in the home, and more. With options that range from a standard 30-year fixed-rate home loan to an adjustable-rate mortgage that lets you pay less in interest for the first few years, your best bet at finding the right loan is to speak with an expert. Our mortgage loan advisors can spend time understanding your needs and goals to assist you in determining the best loan program for you

Joel Lobb
Mortgage Loan Officer

Individual NMLS ID #57916

click here for directions to our office

Text/call:      502-905-3708

         
email:          kentuckyloan@gmail.com

https://www.mylouisvillekentuckymortgage.com/

 

THESE 10 MORTGAGE FACTS WILL GIVE YOU AN ADVANTAGE WHEN SHOPPING FOR A HOME OR REFINANCING AN EXISTING LOAN.

 

THESE 10 MORTGAGE FACTS WILL GIVE YOU AN ADVANTAGE WHEN SHOPPING FOR A HOME OR REFINANCING AN EXISTING LOAN.

1. Mortgage Rates Change

Just like the stock market, mortgage rates change throughout the day. Mortgage rates you see today may not be available tomorrow. If you are in the market for a mortgage loan, be sure to check the current rates being offered by lenders. If you have already done your research and have found your dream home, consider locking in your rate as soon as possible.

2. Different Lenders Charge Different Fees

Don’t expect every lender to charge the same fees for a mortgage loan. Every lender structures their fees differently, which is why it is important to shop with at least 3 lenders to compare. Next time you apply for a mortgage loan pay attention to the rates, points being charged and closing costs.

3. Lenders Can Sell Your Loan to Another Bank

Many borrowers have experience getting a mortgage loan with a certain lender only to find out that the loan has been sold to another bank. This occurs because lenders need to free up their liabilities in order to make room to give out more loans. This does not affect your mortgage whatsoever, but it’s important to pay close attention to your mortgage statement and any correspondence you receive in the mail to make sure you do not make payments to the wrong bank.

4. Your Middle Credit Score Matters

When you apply for a mortgage loan, the lender will pull your credit scores from three credit bureaus (Transunion, Equifax and Experian) to help them determined if you are credit worthy. Your middle score of the three is what lenders will use for loan qualification. However, the underwriter will review all three scores as part of the loan underwriting process. If you pull your own credit score through a website online, the credit scores displayed to you may be different than what lenders use because they use different reporting systems.

5. A Low-Down Payment for a Mortgage is Possible

You don’t have to come up with a 20% down payment to obtain a mortgage loan. You can get a FHA mortgage loan with a down payment of 3.5%. The VA and USDA loans required no money down. VA loans are reserved for military veterans and their families. USDA loans are typically used for rural or farming properties. A Conventional 97 Loan Program has a down payment requirement of only 3%. Freddie Mac and Fannie Mae also have loan programs that allow for a 3% down payment.

Take note that many lenders will require some type of mortgage insurance for loans that have less than a 20% down payment on a purchase loan, or less than 20% equity available on a refinance.

6. You Can Refinance Your Home Loan Anytime

You can refinance your mortgage anytime, but it doesn’t necessarily mean you should. Think about why you want to refinance. Is because you want to lower your monthly payments, to change the type of loan you are in or to take cash out from your equity? Whatever the reason is, make sure that it makes financial sense.

7. You Can Get a Mortgage Loan After a Closing Costs

Many homeowners have experienced a foreclosure after the recent mortgage crisis. There is good news for these borrowers because they can get a mortgage loan after foreclosure. There are waiting periods involved, for example, to apply for an FHA loan you must wait three years after foreclosure to apply. If you want to get a conventional loan the waiting period is seven years from foreclosure. For those seeking a VA loan, the waiting period is two-years.

There are exceptions to the waiting periods, but you have to show the lender that your foreclosure was caused by an event outside your control, such as losing your job or being seriously ill.

8. Good Credit Allows you to Get Better Mortgage Rates

Good credit scores mean a better rate in any type of loan, especially a mortgage loan. Your credit heavily impacts the type mortgage loan you will qualify for. To maintain a good credit report, make sure you monitored it closely. One of the advantages to good credit is that more banks will want to compete for your business, therefore giving you leverage to negotiate the closing costs.

9. Know Your Annual Percentage Rate (APR)

Knowing your APR will allow you see the true cost of your loan. While the interest rate shows the annual cost of your loan, the APR includes other fees such as origination points, admin fees, loan processing fees, underwriting fees, documentation fees, private mortgage insurance and escrow fees.

There may be more or less fees included in the ARP from what we mentioned. To be sure what fees are included in the APR, ask your lender to give you a breakdown of the closing costs included

10. You Can Always Reduce Closing Costs

One way to reduce closing costs is to have the sellers contribute towards the closing costs when purchasing your home. This can be negotiated between the buyer and the sellers in the purchase contract. The amount the seller can contribute will depend on the type of loan. Another way to save on closing costs is to have the lender give you a credit to cover out of pocket loan costs.

Joel Lobb
Senior Loan Officer
(NMLS#57916

text or call my phone: (502) 905-3708

email me at kentuckyloan@gmail.com

The view and opinions stated on this website belong solely to the authors, and are intended for informational purposes only. The posted information does not guarantee approval, nor does it comprise full underwriting guidelines. This does not represent being part of a government agency. The views expressed on this post are mine and do not necessarily reflect the view of my employer. Not all products or services mentioned on this site may fit all people. NMLS ID# 57916, (www.nmlsconsumeraccess.org). Mortgage loans only offered in Kentucky.

All loans and lines are subject to credit approval, verification, and collateral evaluation and are originated by lender. Products and interest rates are subject to change without notice. Manufactured and mobile homes are not eligible as collateral.

Louisville Kentucky VA Home Loan Mortgage Lender: Kentucky VA Home Pest Termites Inspection Fees and...

Louisville Kentucky VA Home Loan Mortgage Lender: Kentucky VA Home Pest Termites Inspection Fees and...:  Veterans Benefits Administration Circular 26-22-11 Department of Veterans Affairs June 15, 2022 Washington, D.C. 20420 Pest Inspection Fees...

Kentucky VA Home Pest Termites Inspection Fees and Repairs cost for Veterans

 Veterans Benefits Administration Circular 26-22-11

Department of Veterans Affairs June 15, 2022 Washington, D.C. 20420

Pest Inspection Fees and Repair Costs

1. Purpose. This Circular addresses the Department of Veterans Affairs policies regarding wood destroying pest inspection fees and repair costs.

2. Background. Historically, VA has authorized, as a local variance, that Veterans may be charged for a wood destroying pest inspection report in a limited number of states and territories.1 Localities susceptible to termites and other wood destroying pests, however, are on the rise. Accordingly, VA requires, as a Minimum Property Requirement, a wood destroying pest inspection report for certain properties located in an area on the Termite Infestation Probability Map2 where the probability of termite infestation is “very heavy” or “moderate to heavy.”3 If applicable, the VA Notice of Value (NOV) will be conditioned for this requirement and MPR repairs identified on a wood destroying pest inspection report must be completed prior to guaranty.4

3. Action. Effective immediately, VA is authorizing in advance, as a local variance, that Veterans may be charged wood destroying pest inspection fees, where required by the NOV. Veterans may also pay for any repairs required to ensure compliance with MPRs. Veterans are encouraged to negotiate the cost of the wood destroying pest inspection and repairs with the seller.

a. Documentation for Audit Purposes. An itemized invoice identifying the Veteran and the property is required to verify the cost on the Closing Disclosure Statement (CD). Lenders should include the invoice(s) to support the cost of the inspection and any repairs in the loan file if the loan is selected for Full File Loan Review (FFLR).

4. Paperwork Reduction Act. The information collection requirements contained in this document have been approved by the Office of Management and Budget (OMB) under the Paperwork Reduction Act of 1995 (44 U.S.C. § 3501-3520) and assigned OMB control number 2900-0515. In accordance with the Paperwork Reduction Act, VA may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection displays a currently valid OMB control number

1 38 C.F.R. § 36.4313(d)(1)(ix).

2 https://basc.pnnl.gov/images/termite-infestation-probability-map-adapted-2021-international-residential-code-irc-figure.

3 VA Lenders Handbook, Chapter 13, Topic 8.c.

4 38 U.S.C. § 3704(a), 38 C.F.R. § 36.4351.

Joel Lobb
Mortgage Loan Officer

Individual NMLS ID #57916

American Mortgage Solutions, Inc.

10602 Timberwood Circle 

Louisville, KY 40223

Company NMLS ID #1364

click here for directions to our office

Text/call:      502-905-3708

fax:            502-327-9119
email:          kentuckyloan@gmail.com

https://www.mylouisvillekentuckymortgage.com/

 

Closing Costs for a Kentucky Mortgage Loan?

Kentucky Mortgage Closing costs can include the following:

Down Payments 

20% of the purchase price depending on your qualifications and loan choice

Earnest Money Deposit 

The money put down when a contract is written - it usually goes into an escrow account

Lender Fees 

Includes charges for loan processing, underwriting and preparation

Third-party Fees 

Includes charges for insurance, title insurance, title search, appraisal fees and other inspections

Government Fees 

Includes deed recording and state mortgage taxes

Escrow Interest Fees 

Include homeowner's insurance, loan interest, real estate taxes, home warranties and prepaid interest

Property Taxes

Capital tax based on the estimated value of the property


Please do not hesitate to contact me when you are ready to take the next step. I look forward to assisting you!

I can answer your questions and usually get you pre-approved the same day.

Call or Text me at 502-905-3708 with your mortgage questions.

Email Kentuckyloan@gmail.com









The view and opinions stated on this website belong solely to the authors, and are intended for informational purposes only. The posted information does not guarantee approval, nor does it comprise full underwriting guidelines. This does not represent being part of a government agency. The views expressed on this post are mine and do not necessarily reflect the view of my employer. Not all products or services mentioned on this site may fit all people. NMLS ID# 57916, (www.nmlsconsumeraccess.org). Mortgage loans only offered in Kentucky.


All loans and lines are subject to credit approval, verification, and collateral evaluation and are originated by lender. Products and interest rates are subject to change without notice.

Kentucky USDA Rural Housing Loans : Kentucky Mortgage Closing Costs Guide for USDA, FH...

Kentucky USDA Rural Housing Loans : Kentucky Mortgage Closing Costs Guide for USDA, FH...: A Complete Guide to Kentucky Mortgage  Closing Costs Types of Kentucky Mortgage Closing Costs Let’s talk briefly about the types of clo...

Kentucky VA Allowable Closing Costs On a VA Mortgage

ALLOWABLE CLOSING COSTS ON A KENTUCKY VA MORTGAGE LOAN

Maximum 1% origination fee or mortgage broker fee
Appraisal and compliance inspections for followups (442)
Recording fees 
Credit report fees
Prepaid items (taxes, assessments and similar items) 
Hazard insurance fee
Flood determination 
Survey 
Title examination 
Title insurance 
Special mailing fees for refinancing loans 
(MERS) fee 
Other fees authorized by VA 
If an origination fee is charged, lenders may NOT assess veterans any other 
fees, other than the allowable fees noted above.

Joel Lobb
Senior  Loan Officer

(NMLS#57916)

 phone: (502) 905-3708

 Fax:     (502) 327-9119

kentuckyloan@gmail.com

 Company ID #1364 | MB73346

http://mylouisvillekentuckymortgage.com/

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