NBKC Bank Mortgage Review for August 2022

NBKC Bank, or National Bank of Kansas City, is a Kansas City, Missouri-based bank that offers mortgages nationwide. With an emphasis on customer service and building long-term relationships with clients, NBKC loan officers have an average of 16 years of experience. This lender primarily operates online but has a few physical branches in Kansas and Missouri.

like

  • The $250 flat fee covers most fees involved in the mortgage process
  • No cost to lock in an interest rate for 75 days
  • $5,000 Closing Cost Guarantee

I don’t like

  • Only 5 physical NBKC locations in Kansas and Missouri
  • No USDA Loan Option
  • Very limited availability for HELOCs

One of the things we like best about NBKC is their $5,000 closing cost guarantee, which stipulates that the seller and you, the buyer, each receive $2,500 — if the deal is closed late due to a delay from NBKC. However, delays caused by a third party such as a home appraiser do not qualify. The closing cost guarantee can make you, as a potential buyer, more attractive to the seller and tilt the odds in your favor. In an intensely competitive real estate market, every advantage counts, and this one is convincing.

A large percentage of NBKC mortgages are VA loans, which are designed for veterans and their families. In 2021, the bank financed $6.5 billion in home loans, of which $1.55 billion was VA loans.

Here’s everything you need to know about NBKC Bank and their mortgage offerings.

What types of mortgages does NBKC Bank offer?

NBKC offers most standard home loan options. Its complete list includes:

  • VA, or Veterans Affairs Loans
  • FHA Loans, or Federal Housing Administration
  • Conventional
  • jumbo
  • ARMs, or Adjustable Rate Mortgage Loans
  • Refinance
  • real estate loans (national)
  • HELOC, or home equity lines of credit (Kansas City only)

Minimum credit score

NBKC requires a minimum credit score of 620 for most of your conventional mortgages, as well as VA and FHA loans. For a jumbo loan, the minimum credit score is typically 680.

Minimum entry payment

With most lenders, the minimum payment required varies by loan type, and NBKC is no exception. That noted, here is the guidance provided for the main loan types.

  • VA loan: Minimum payment of 0% required
  • FHA loan: Minimum payment of 3.5% required
  • Conventional loan: Minimum 3% payment required

NBKC borrowers typically have a credit score of 700 or higher for a 3% down payment. But it recommends borrowers pay 5% if possible, as the math will work better in your favor over the life of the loan because you will save thousands of dollars in interest over the course of the mortgage.

What are NBKC’s terms and fees?

Another selling point is that NBKC charges a fixed amount of $250 which covers all the various expenses normally paid to a mortgage lender. This includes origination fees and other standard costs that a borrower will often have to pay when taking out a home loan. In contrast, most lenders charge a percentage of the total loan – usually 1% – for loan origination. On a loan of $400,000, that would be $4,000.

The bank requires a maximum deposit of $500 for a home appraisal (or less if your appraisal costs less than $500), which goes towards the final cost of the appraisal.

However, there are typical closing costs and fees associated with buying a home, no matter who your mortgage lender is. Some of them include:

  • title insurance
  • Advocative hours
  • Taxes
  • homeowners insurance
  • Mortgage insurance start-up costs

See More information: Mortgage Closing Costs: What They Are and How Much You’ll Pay

Does NBKC offer discounts?

Like most mortgage lenders, NBKC offers mortgage points to lower your interest rate. If you pay off a few mortgage points upfront, the bank will lower your interest rate, saving you thousands of dollars over the course of the loan.

Where does NBKC operate?

NBKC operates online in all 50 US states. However, the bank only has five physical locations in Kansas and Missouri.

Can you refinance with NBKC?

Yes, NBKC offers home loan refinancing. Their website has two refinancing calculators, one that helps you determine what your break-even point is and one that helps you figure out how much interest you can save by refinancing. They offer both Cash Out Refinancing and Standard Rate Term Refinancing.

Common questions

Does NBKC advertise interest rates online?

To see interest rates on the NBKC website, you need to answer some basic questions about how much house you can afford and how much you plan on putting down. You don’t need to enter any personal information or data like some other lender sites. But in order to get a qualified personal interest rate and pre-approval letter, a credit check is required, which is standard procedure for any lender who is pre-approving you for a mortgage.

How many days does it take to close a house with NBKC?

On average, it takes about 33 days to close a home with NBKC, but it can depend on where you’re shopping, a rep said. For example, in places like Alaska and Texas, where demand for housing has skyrocketed in the last couple of years, closures can be delayed because appraisers are backed up, so it can take up to 60 days — though the timeframe is always changing.

CNET reviews mortgage lenders against a variety of criteria, including: types of loans offered, credit score requirements, down payment requirements, features, terms and fees, discounts offered, affordability and refinancing options.

More mortgage advice

The editorial content on this page is based solely on objective and independent assessments by our writers and is not influenced by advertising or partnerships. It was not supplied or ordered by a third party. However, we may receive compensation when you click on links to products or services offered by our partners.

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