How to Buy a House in Oklahoma: A Homebuyer’s Guide
Updated: May 21, 2023
Advertising & Editorial Disclosure
Luckily for Oklahoma homebuyers, the state ranks very highly in terms of housing affordability. In fact, according to MoneyGeek’s research, it is the 10th cheapest state to buy a home.
Homes in Oklahoma cost an average of $189K, which is about a 15% increase over the previous year. Although median home prices in the state have seen slightly greater growth rates since 2020, rates are still much cheaper than the national average, which is currently at $358K.
MoneyGeek developed this expert guide to assist you in the homebuying process and help you close the deal without falling into money traps along the way.
Choose an Ideal Location
As a homebuyer, one of the key factors that you should consider is the property’s location. This has a significant impact on your home’s cost and, consequently, on the mortgage that you’ll need to pay off.
Additionally, your home’s location determines the cost of living and your access to amenities, such as schools and hospitals. It will also give you an idea of the available recreational activities and the neighborhood culture.
Calculate Mortgage Rates
When determining your eligibility for a mortgage and calculating your rates, your lender will typically look at your income, credit score and debt-to-income ratio. Make sure to get the best possible rates by shopping around and comparing lenders. You also might be eligible for various mortgage loan options with varying rates that can affect how much you need to pay per month.
Prepare Down Payment Requirements
The rule of thumb is to save 20% for a down payment on a house. But this market standard has relaxed over the years, especially if you’re willing to buy private mortgage insurance (PMI), making homeownership more affordable.
Depending on the type of mortgage that you apply for, down payment guidelines may start from as low as 3.5%. If you qualify, there are also federal housing loans that don’t require any upfront payment, such as USDA and VA home loans.
Get Pre-Approved for a Mortgage
Getting pre-approved for a mortgage is an essential step and can be a requirement for some sellers.
Mortgage pre-approval is different from prequalification. A pre-approval means that a lender has committed to giving you a mortgage at a given loan amount after reviewing your credit report and other financial documents. Meanwhile, a prequalification only serves to prove that you meet the requirements for a mortgage loan with a rough estimate of the amount you’re eligible to borrow.
Conduct a Home Inspection
It is critical to perform a home inspection before buying a property. For a fee of up to $450, a licensed inspector will check for any issues that may require a substantial amount of repairs and expenses. You can use this to your advantage as a homebuyer by negotiating a lower price, especially if the home requires significant repairs or upgrades to meet the current standards.
Close Your Mortgage Loan
Your lender will give you a loan offer once the home inspection and appraisal have shown satisfactory results. Carefully review this offer before proceeding to close the mortgage loan.
Keep in mind that there are closing costs that you must be prepared to pay. Fortunately, there are financial assistance programs in Oklahoma that can help you pay these additional expenses if you’re short on funds.
Oklahoma Homebuying Details
There are several homebuying details unique to Oklahoma that you need to be aware of before purchasing a property in the state. For instance, the median home prices and cost of living in Oklahoma tend to be lower than the national average, which makes it a good choice for homebuyers who value affordability.
Oklahoma’s home prices and the overall cost of living are very affordable compared to most states. But these can still vary greatly depending on the municipality. Typically, homes that are located in suburbs or rural areas are much cheaper but have limited access to amenities like schools, hospitals, malls and recreational centers in exchange for the lower costs.
If you aren’t financially prepared to cover the market standard of a 20% down payment, check if you qualify for government-backed home loans and conventional loans that have lower down payment requirements. There are also financial assistance programs that can help you with both down payment and closing costs, like the OHFA Homebuyer Down Payment Assistance and Oklahoma City HOME programs.
Frequently Asked Questions About Buying a Home in Oklahoma
Below are MoneyGeek’s answers to a few commonly asked questions to guide you on how to buy a home in Oklahoma.
Before deciding to purchase a home in Oklahoma, you must ask yourself these questions:
- Which is the ideal location of your home?
- What mortgage loan type and APRs will you qualify for based on your personal and financial profile?
- How much can you afford as a down payment?
It might be a good idea to purchase a home in Oklahoma if you want to take advantage of affordable housing and a low cost of living.
The median home prices in Oklahoma have grown steadily over recent years. The past year saw a 15% jump in home prices across the state. As a homeowner, you’ll stand to gain from this increase in property value if this trend continues.
This mainly depends on the requirements set by the lender, as well as the price of the property that you intend to buy. Some lenders do not have an income requirement, but others will look at your income and credit profile to evaluate your creditworthiness. Your income must be deemed sufficient to meet the monthly mortgage payments.
Property taxes are solely assessed at the county level in Oklahoma. While they do vary by county, Oklahoma’s property taxes are generally among the lowest in the nation. Oklahomans pay an average of $796 per year in property tax or 0.74% of the property’s value.
The Oklahoma towns and cities of Del City, Glenpool, Henryetta, Noble, Alva, Anadarko, Holdenville, Seminole, Perry and Blackwell are all cheap places to buy homes.
sources
- International Association of Certified Home Inspectors. "Home Inspection Standards of Practice." Accessed October 22, 2022.
- Oklahoma Housing Finance Agency. "Homebuyers." Accessed October 24, 2022.
- Tax-Rates.org. "Oklahoma Property Taxes by County." Accessed May 21, 2023.
- U.S. Department of Agriculture. "Single Family Housing Guaranteed Loan Program." Accessed October 26, 2022.
- U.S. Department of Veterans Affairs. "VA Home Loans." Accessed October 27, 2022.
- Zillow.com. "Oklahoma Home Values." Accessed October 20, 2022.
- Zillow.com. "United States Home Values." Accessed October 20, 2022.