First-Time Homebuyer Guide for the Oklahoma City Metro
Buying your first home is a major milestone. This guide walks you through the key steps—from planning a comfortable budget and preparing your finances to exploring loan options, touring homes, making an offer, and closing on your new home.
Realty Department is a licensed real estate brokerage serving the Oklahoma City Metro. We help buyers understand the process and connect with the next steps when they are ready to begin their home search.
Ready to discuss financing? Get pre-approved through our loan partner.
Determine Your Affordability
Start by identifying a monthly housing payment that fits your overall financial picture—not simply the highest amount you may be approved to borrow.
Your estimated housing costs may include:
Mortgage principal and interest
Property taxes
Homeowners insurance
Mortgage insurance, when applicable
HOA dues, if applicable
Utilities, maintenance, and repairs
Review your current debts, savings goals, and regular household expenses before deciding on a price range. A mortgage professional can help you understand financing options, while your real estate professional can help you focus your home search on properties that fit your goals.
Free First-Time Homebuyer Starter Checklist
Get a simple step-by-step checklist to help you organize your budget, prepare key documents, understand the home-search process, and know what to expect before making your first offer in the Oklahoma City Metro.
Begin Preparing Your Finances
Prior to being approved for a loan, you’re evaluated by how much risk you pose as a borrower. To ensure you’ll be able to make regular payments each month, there are a few factors taken into account that determine whether or not you qualify. These components, specifically your credit score, will also set the rates you qualify for.
That’s why it’s so important that you prioritize your financial health, and work to address and strengthen any identifiable weaknesses prior to buying a home.
Credit Score
Your credit score will have a major impact on determining whether or not you qualify for a loan. When financing through specific programs, this number will also influence the rates and terms that you’re offered.
What is your oldest credit line?
How much total credit do you have available to use?
Do you regularly make payments?
Do you have any delinquencies?
Have you previously filed for bankruptcy, short sale or foreclosure?
Based on this information, the bank will determine whether or not it feels comfortable lending such a large sum of money. However, since credit isn’t the only component that demonstrates your capacity to pay back money in a timely manner, other elements will be considered such as debt-to income ratio, total income, employment history and assets.
Debt-to-Income Ratio (DTI)
Your debt-to-income ratio, often called DTI, compares your recurring monthly debt payments with your gross monthly income. Mortgage lenders may review DTI as one factor when evaluating a loan application, but requirements can vary by lender and loan program.
To estimate your DTI:
Step 1: Add your recurring monthly debt payments, such as car loans, student loans, credit-card minimum payments, child support, and any anticipated housing payment.
Step 2: Divide that total by your gross monthly income.
Step 3: Use the result as a starting point for a conversation with a mortgage professional about your financing options and a monthly payment that fits your budget.
A DTI estimate does not guarantee loan approval, loan terms, or a specific borrowing amount.
Begin Saving Money for a Down Payment
Some programs do offer zero percent financing, however, keep in mind that those rates will also increase the amount of interest you accrue over the lifetime of the loan. In addition, zero-down programs are typically offered to specific buyers, (such as veterans or those purchasing property within a rural area) so expect to put down a minimum of 3.5%.
To ensure you’re prepared with the funds necessary to close on a home when you want to, its recommended that you begin saving towards that down deposit well in advance of securing your new home.
Explore Your Loan Options
Your dedicated loan officer will work with you to explore the program that best aligns with your needs:
FHA Home Loan
Government-backed FHA home loans are often relied upon by first time home buyers. They’re accompanied by some of the industry’s most flexible guidelines, require little down payment and don’t discount homeowners with lower credit scores.
Conventional Home Loan
Conventional Home loans are often not associated with the federal government but rather adhere to guidelines initiated by two agencies known as Fannie Mae and Freddie Mac. While they don’t have requirements as forgiving as FHA, these programs offer competitive rates and reasonable down payments that suit many first-time home buyers with adequate credit.
USDA Home Loan
USDA Home Loans are programs designed to benefit homeowners looking to purchase property in rural areas. Similar to VA and FHA, it is backed by the government and has the potential to offer great terms that benefit home buyers. It’s the only home loan program that offers a 0% down payment available to people who are not veterans.
VA Home Loan
VA Home Loans are government issued loans offered to qualifying individuals who are currently active duty personnel, veterans, or surviving spouses who meet necessary requirements. These programs offer zero down payment, no minimum credit score and no cap on debt-income ratio.
Factor in Total Costs
When buying your first home, plan for both upfront transaction costs and recurring monthly expenses:
Down Payment: The initial cash payment toward the purchase price, determined by your loan program and purchase contract.
Earnest Money Deposit: A good-faith deposit submitted with your offer, held in escrow, and credited toward your closing costs or down payment at closing.
Home Inspection: An independent, professional evaluation of the property’s physical condition (structure, roof, plumbing, electrical, HVAC). While optional, it is strongly recommended for your protection.
Appraisal Fee: Ordered by your lender to confirm that the property’s fair market value supports the loan amount.
Closing Costs: Lender fees, title search, title insurance, recording fees, and prepaid escrow items (taxes and insurance), typically totaling 2% to 4% of the purchase price.
Property Taxes & Homeowners Insurance: Ongoing annual costs usually collected monthly as part of your mortgage escrow payment.
Ongoing Maintenance & HOA Fees: Budgeting for regular repairs, system upkeep, and any applicable neighborhood association dues.