Purchasing a home can be a difficult process. In fact, for first-time purchasers, the procedure can be plain perplexing and daunting. The fact that it is the largest financial transaction of your life – you don’t want to make a hugely expensive mistake – is the primary driver of home-buying anxiety. However, if you take the appropriate first measures, the buying process may be made lot more simple – and financially safer. So, if you’re looking to buy a home in Oklahoma, take a look at this quick guide.
Take a Hard Look at Your Finances
Your first step toward purchasing a home in Oklahoma should be a thorough examination of your financial situation. A thorough examination of your financial status will reveal whether you are truly prepared to undertake such a significant and costly investment. So take care of this vital chore before you start looking at postings.
Consider your savings first. Financial gurus advise that you “never contemplate buying a home until you have an emergency savings account with three to six months’ worth of living expenses.” There will be significant upfront fees when purchasing a property, including the down payment and closing costs. Not only for those expenses, but also for an emergency fund, you’ll need money set aside. It will be required by lenders.”
You should also analyse your monthly expenses and spending habits so that you know exactly how much and where you spend each month. “This calculation will tell you how much money you have available to put toward a mortgage payment.” Make sure you account for everything, including electricity, food, auto upkeep and payments, student loans, clothing, children’s activities, entertainment, retirement savings, regular saves, and any other miscellaneous expenses.”
And then you need to look at your credit, debt-to-income (DTI) ratio, and payment history. You will, of course, need at least the minimum required credit score, maximum DTI ratio of 43%, and a history of paying bills on time.
Determine the Type of Home and Features You Want/Need
It’s time to consider what you want and need in your new home after you’ve assessed your financial status and ensured that you are truly in a position to buy a home.
This entails first determining what type of home will best suit your wants and lifestyle. “When purchasing a residential property, you have a variety of choices: a standard single-family home, a duplex, a townhouse, a condominium, a cooperative, or a multifamily complex with two to four units. Depending on your homeownership goals, each option has advantages and disadvantages, so you must select which sort of property will best help you achieve them.”
Next, think about the qualities you require and desire. Compiling a list of must-have features and simply like-to-have features is a solid place to start. Keep in mind that “you’re making possibly the most important purchase of your life, and you deserve for it to meet both your requirements and desires as closely as possible.” Your wish list should contain everything from the basics, such as size and location, to smaller things, such as bathroom layout and a kitchen with long-lasting appliances.”
You’re {market_city] agent can help you assess home types and features. To find out more, just call (539) 664-8033.
Find Out How Much You Can Borrow and Get Pre-approved
Your next step toward buying a home in Oklahoma involves the mortgage. Primarily, this means finding out how much you can borrow and getting pre-approved.
“Before you go house hunting, you need figure out how much a lender will loan you for your first home. You may believe you can afford a $300,000 property, but lenders may believe you’re only qualified for $200,000 based on factors such as other debt, monthly salary, and length of employment. Furthermore, many real estate agents will refuse to work with clients who haven’t determined how much they can pay.”
You should also be pre-approved for a mortgage to give yourself greater negotiating power and to be seen as a serious buyer. Pre-approval confirms that you will be able to obtain a mortgage (barring any unexpected financial changes) and that you will know exactly how much you may borrow. Because many sellers “would not even contemplate an offer that is not backed by a mortgage pre-approval,” this is a vital step.
Calculate What You Can Actually Afford
But just because you can borrow a certain amount, doesn’t mean you should. So before buying a home, you also need to calculate what you can actually and comfortably afford.
“A bank may grant you a loan for a larger home than you truly want to pay for. Simply because a bank says it will lend you $300,000 does not mean you should borrow that amount. Many first-time homebuyers make this error, leaving them ‘house poor,’ with little left over after their monthly mortgage payment to afford other expenses like clothing, electricity, vacations, entertainment, or even food.”
And do keep in mind that the monthly mortgage payments are not the only expenses involved in buying a home. You’ll have many other recurring expenses such as property taxes, homeowners insurance, utility bills, the cost of maintenance and repairs, and HOA fees.
Hire a Oklahoma Agent When Buying a Home
An experienced, local Oklahoma realtor is another wonderful place to start when buying a home. A professional agent can assist you in finding a house that fulfils your needs and is within your budget, as well as with all of the paperwork and negotiating the best possible bargain. In reality, in today’s real estate market, a good agent is practically required – and we have the agents you require. So, if buying a property is on your mind, give us a call at (539) 664-8033.
