Calculating the Oklahoma real estate closing costs for buyers is vital. Even in a supposed economic boom, most Americans still can't come up with the money for a $400 emergency, meaning that a down payment on a house is a serious stretch. Finding out there are more out-of-pocket costs during a home sale is frustrating for many home buyers.
Working with a top-rated, Oklahoma buyer's agent can ensure that you're prepared for all of the costs to come during closing. Fill out our online form so that we can pair you with one of our local Partner Agents in Oklahoma for a no-obligation consultation.
Closing Costs for Oklahoma Homes: What to Expect
When buying a home, most homeowners think so long as they can cover the cost of the mortgage, they're in the clear. It's very common for homeowners to overlook the costs associated with closing on a property. When sitting down at the closing table, it's important to know what's expected of you as a buyer, since these costs need to be paid out-of-pocket.
Recent data from Bankrate states that Oklahoma buyers are going to pay around $900 in loan origination fees and another $900 in third-party fees, totaling more than $1,800 on average. While this is an irritating figure to some buyers, it's just a fraction of what the overall costs will be.
In a hot market like Oklahoma City, you can expect to pay up to 5% of the total cost of a home in closing costs. According to Zillow data, the median home value in Oklahoma City is $130,000. Given that number, you could be paying $6,500 just to cover your closing, on top of the 20% you need for your down payment.
This is just one of the reasons that you need to be working with an experienced local agent. The harder that they work to bring down the cost of your home, the more value that they'll unlock overall.
Common Closing Costs for Oklahoma Home Buyers
While many of the costs that come from the home transaction are covered by the seller, there are some that fall on the shoulders of the buyer. Thankfully you don't have to cover the costs associated with your own real estate agent, which means you can hire the best that Oklahoma has to offer.
As a buyer, you'll have to cover the fees associated with your title. The examination and title insurance will cover you from issues with the title. Some lenders might require you to get a zoning endorsement for your title but all titles in Oklahoma require a final title report to accompany title insurance.
Buyers are also required to pay for recording fees to the Oklahoma county clerk. They'll charge $13 for the first page and then $2 for each additional page, so keep the deed and mortgage short and sweet.
Lenders in Oklahoma are often going to charge you for a termite inspection and an appraisal, which can run you a few hundred dollars in total. All of the fees that come with buying a home could have you feeling overwhelmed.
Running these inspections can be a blessing in disguise however, as you'll know exactly what's wrong with a home before you invest in it. You can ask for seller credits to help offset the costs of any repairs and issues that need to be dealt with to make the home safe and structurally sound. While buying a fixer-upper might not be your aim, being able to recoup some of the expenses that all homes require is a worthwhile result of an inspection.
Other Costs to Consider
If you calculated your ability to pay for your home based on your current income against the mortgage payments alone, you might have set yourself up for issues. Failure to prepare for the many recurring costs that accompany a home purchase can lead you into debt.
Homeowners need to have insurance to protect their asset from storms and tornadoes that occur in Oklahoma. They also need to cover the costs of local property taxes. An experienced local real estate agent will ensure that you buy a home that's in an area that's less susceptible to natural disaster or from tax collectors.
If you're moving from a smaller home to a much larger one, expect to pay higher utility bills. This could be an unwelcome consequence of having moved into the home of your dreams.
It's important that you're financially stable and planning to put some roots down in Oklahoma before purchasing a house there. Once you make the big life decision to buy a home, there are a lot of major responsibilities to follow.
How to Save on Closing Costs in Oklahoma When Buying a Home
While the closing costs that you have to deal with as a buyer can be intimidating, they aren't written in stone. Many of the costs associated with closing can be negotiated with sellers. If sellers are motivated and need to sell fast, they're more likely to want to cover a few things to help move the transaction along.
REI Oklahoma has some assistance programs to help buyers cover out-of-pocket costs. They work with participating lenders to ensure that low-income borrowers who can cover monthly mortgages aren't held up because of down payments. Saving up for a down payment is hard but homeowners who want to build equity might be able to via this gift with no requirement to pay it back, even if the home is sold or refinanced.
The Federal Housing Administration also has programs to help out first-time buyers, veterans, and low-income buyers. These programs take into account credit scores and debt-to-income ratios to determine how much they're entitled to. The funding they provide can often be used for down payments or closing costs and is offered at a low-interest rate.
One of the most surefire ways to save money on your home is to work with a Clever Partner Agent. With their local knowledge and negotiating process, they'll be sure to uncover cost savings throughout the home buying process.
Contact us today to be paired with an agent from right in your backyard.