The state of Oklahoma seems to be a quiet peaceful area to get about. While buying a home in Oklahoma, you’ll enjoy inexpensive housing costs, reasonable living expenditures, and some of the best quality air in the nation.
“The Sooner State” is the appellation given to the state of Oklahoma. First used about the opening of the Indian Territory to white settlers in 1889. Thousands of people formed a queue at the border and sprinted through it as soon as the signal was given. Some individuals rushed in to stake out their territory. Sooners gained a nickname for them. Since then, Oklahoma has been known as The Sooner State. The nickname now embodies Oklahoman’s “can-do” spirit.
It’s critical to familiarise yourself with the Oklahoma real estate market before beginning your search for a home. Moving to a new state may also provide some challenges while searching for a new place to call home. We’ll cover all you need to grasp about buying a home in Oklahoma, from knowing your finances to deciding on the ideal location.
1- Calculate Your Finances For Buying A Home In Oklahoma
To begin purchasing a home in Oklahoma, you must first assess your financial situation. If you’re planning on taking out a mortgage, you must have a thorough grasp of your financial situation.
You’ll be able to find out how much you might easily afford on a new house after doing some basic math.
i- Review Your Credit Score
Your credit score influences many parts of your life. Higher-scoring students have a better time of it. To qualify for a traditional mortgage, you’ll need a credit rating of at least 620. Is it still a little off? With a poor credit score, you may get a mortgage from certain lenders, but you’ll likely have to pay a high-interest rate.
If you satisfy certain criteria, you may also be eligible for a federal loan or program. For example, if you have a credit score of 500 and intend to live in the home full-time, you may gain an FHA loan with a credit rating as low as 500.
ii- Check Your DTI Ratio
If you’re looking to buy a home, you’ve probably heard the phrase “debt-to-income ratio.” Simply put, DTI measures the difference between your monthly take-home income and your monthly outgoings. To be sure you can afford your monthly mortgage payments, potential lenders will ask for your DTI ratio. To qualify for a mortgage, you must have less than 20% of your gross monthly income dedicated to debt.
A DTI is a ratio of monthly debt payments (including the expected mortgage payment) to monthly gross income. Assume your monthly bills total $1,730, which includes your credit card bills, auto payments, and child support, and your monthly take-home pay is $4,327, which is the average in Oklahoma. Because of this, your debt-to-income ratio is at 39 percent. Most lenders prefer a debt-to-income ratio of less than 36%, although some would go as high as 43% when issuing a mortgage.
iii- Decide Your Down Payment
Determining how much of a down payment you can pay is a critical step in home buying. To get a traditional loan, you’ll have to put down 20% of the purchase price upfront.
As a result, a down payment of $28,000 is required in Oklahoma, where the median home price is $140,000.
Having to come up with that kind of cash upfront is challenging for many individuals. If you can’t afford a 20% down payment, you may be eligible for alternative financing options.
VA and FHA mortgages have substantially lower payment obligations if you meet the requirements. VA loans demand no down payment, but FHA loans need a 3.5 percent down payment for people with strong credit scores.
iv- Closing Costs And Other Charges
Purchasing a property requires a down payment, as well as closing charges and other fees.
However, what are the closing charges exactly? Title checks, mortgage insurance, and attorney’s fees all add up to a hefty last bill for legally completing a real estate purchase.
In most cases, the buyer is liable for most of the closing expenses, which normally total between 2% and 5% of the loan amount.
2- Searching For Insurance For Buying A Home In Oklahoma
The last element of the house-buying puzzle is homeowner’s insurance. A mortgage lender will almost always demand you to have it to sign on the dotted line before they would consider approving your loan.
Although the national average is $1,387 a year, homeowner’s insurance in Oklahoma costs $2,520, which is much more than the national average. Before finalizing your house purchase, Regentology can assist you in locating low-cost homeowner’s insurance coverage. To get a free insurance consultation, just fill out the information form.
3- Getting Pre-Approved For A Mortgage
You may be pre-approved for a mortgage after your finances are in order. Besides giving you an advantage over other buyers, it also shows sellers that you are a serious buyer. A lot of sellers will not even show you a house until you first show them your pre-approval letter.
4- Searching For A Home
You should look at different areas of the state before deciding on where to purchase a home. Look for a place where you can afford to live, have access to excellent schools, and get about easily.
Oklahoma has one of the nation’s hottest real estate markets at the beginning of 2022. There have been four or more bids on properties in Oklahoma City recently, with the typical sale taking a little over a week to complete.
It’s crucial to keep in mind that Oklahoma does not have any big cities. However, if you like city life in a mid-sized town, Tulsa and Norman are popular choices since they provide an urban experience without the bother.
5- Finding An Expert Realtor For Buying A Home In Oklahoma
It is necessary to select a real estate agent as soon as you’re ready to look at residences. Even if you don’t need one, it’s a good idea to hire a real estate agent if you are the first out-of-state buyer.
Your realtor will be there for you every step of the way, from showing you properties to ensuring that the closing goes as smoothly as it can. To get the greatest deal, you’ll want to work with an experienced realtor who has a pulse on the local property market.
Regentology has the best network of expert real estate agents in Oklahoma. If you want to get a free consultation, you can fill out the online form.
6- Making An Offer
It’s time to put in an offer on the house you’ve been eyeing. It’s not uncommon for homes in Oklahoma to be listed for sale for 53 days on average, but this varies throughout the year.
In the spring, there is usually a higher demand from buyers and thus a higher level of competition. If you want to move at a busy time of year, you’ll need to put in an offer sooner than you would otherwise.
7- Best Areas For Buying A Home In Oklahoma
Around 3.9 million people are living in the state of Oklahoma, which is in the Midwest and is known for its vast forests, rolling hills, and lakes. Oklahoma’s median household income is slightly below the national rate of $53,889. This makes it one of the least wealthy states in the US. Although the economy seldom experiences peak times, there is a consistent and solid income from agriculture, logistics, and energy in Oklahoma.
The fact that a home has enormous windows or a vineyard in the backyard has no bearing on our decision-making process when searching for a new place to live. Our true determining considerations are things like accessibility to decent public schools and commuting connections, housing affordability, and crime statistics.
This is more like a tiny town than a suburb, with a population of 86,739 people! Edmond is the best value in town with cost. The average cost of a home is $199,600, and you’ll get a lot of square footage for your money. For example, a $144,900 home on Rocky Point Drive. It comes with three bedrooms, two bathrooms, a large backyard, and a lengthy driveway.
Those who live in Edmond, which has Oklahoma’s greatest school system and parents earning an average of $71,974 per year, are a hardworking middle-class American population. This results in a pleasantly varied city.
Jenks is conveniently near Tulsa’s Richard Lloyd Jones Jr Airport, making it ideal for individuals who need to travel throughout the state. As a Tulsa suburb, there are plenty of career options and a strong sense of community.
With 27% of inhabitants of school age, many families are involved in the community to help their children mingle and get to know one another. While Jenks is more wealthy than Edmond, property prices remain considerably below $200,000, making this a non-exclusive region. The rent is $1,098, but considering the well-paying employment in Tulsa, this is also acceptable.
iii- Oklahoma City
Now is the moment to go out of the suburbs and into Oklahoma City. With 610,672 citizens, this vibrant metropolis has a vibrant and diversified population. Oklahoma City’s nightlife is fantastic, and there are lots of options to exercise and dine at fashionable hipster cafes.
The closer you approach the CBD, the more expensive property becomes, although a house in Oklahoma City averages $138,600. This is a steal for a big American metropolis. Oklahoma City’s median rent is $778, making it a millennial magnet.
Bartlesville is located south of Copan Lake and north of Tulsa. With 36,360 residents, the only thing missing is outside activities. However, if you drive up to Copan Lake, there are many nice hiking paths nearby.
The median rent is only $687, making this a perfect spot for remote workers looking to save for a down payment. Locals think Bartlesville is expanding and improving, and that it has a bright future ahead of it.
Buying A Home In Oklahoma With Regentology
Using the services of a real estate agent may save you tens of thousands of dollars in the home of your dreams. Our agents strive to make the home-buying process as simple and stress-free as possible for you. Our mission is to learn about your specific requirements. Also, your financial and time constraints, and support as you work toward achieving them.
Begin your search for the home of your dreams. Just complete the information form to find the top real estate agents in Oklahoma. Also, you will get a free consultation from them.