Buying a house in Kentucky, step by step

1. Know your number before anyone else gives you one

Start with our affordability calculator (the 28/36 rule lenders use) and the mortgage calculatorwith this week's real average rates. Decide your comfortable monthly payment first — lenders will happily approve more than you should spend.

2. Check the programs that lower the barrier

• Kentucky Housing Corporation (KHC) — down-payment assistance loans that stack with a first mortgage; many Kentucky buyers qualify and never apply.
• FHA — 3.5% down with flexible credit.
• VA — 0% down, no monthly mortgage insurance for eligible veterans.
• USDA — 0% down outside city limits (check the map — more of Kentucky qualifies than you'd guess).

3. Get pre-approved (not just pre-qualified)

A pre-approval means a lender verified your income, credit, and assets — sellers take those offers seriously. Shop two or three lenders; rate and fee differences on the same borrower are real money.

4. Shop — with or without an agent

A buyer's agent costs you little directly and handles paperwork and negotiation. Going without one (or buying a for-sale-by-owner home) is legal and workable — but then hire a Kentucky real estate attorney to draft or review the purchase contract. A few hundred dollars of attorney time protects a six-figure purchase.

5. Offer and negotiate

Your offer sets price, earnest money (commonly ~1%), closing date, and contingencies — keep the inspection and financing contingenciesunless you deeply understand what waiving them means. If the house visibly needs work, price the repairs first (that's literally what our estimates are for) and negotiate with numbers, not vibes.

6. Inspection and appraisal

Kentucky doesn't require a home inspection — get one anyway (typically a few hundred dollars). Big-ticket findings — roof, HVAC, foundation, wiring — become either repairs the seller makes, credits at closing, or your reason to walk. The lender orders the appraisal separately to confirm the home is worth the loan.

7. Closing: what it actually costs

• Closing costs run roughly 2-5% of the price (lender fees, title insurance, prepaid taxes and insurance, recording).
• In Kentucky, the small deed transfer tax is customarily paid by the seller.
• Kentucky property taxes are modest by national standards — but verify the actual county bill for the specific house.
• Review your Closing Disclosure against the CFPB checklist before signing day — you get it three days ahead by law.

8. After the keys

Budget 1-2% of the home's value per yearfor maintenance, fix water problems immediately (they're the ones that compound), and when a project comes up — you know where the free estimates are.