Why should I buy, instead of rent?
There are many reasons to buy a home instead of rent. These reasons include:
- Pride of Ownership
- Appreciation
- Mortgage Interest Deductions
- Property Tax Deductions
- Capital Gain Exclusion
- Preferential Tax Treatment
- Mortgage Reduction Builds Equity
- Equity Loans
Should I use a real estate broker?
Alamere Real Estate has created a dedicated section to this question. For more detailed information, please contact us.
How do I find a lender?
Much like finding a real estate agent, finding a lender is an important step in buying your home. It is best to use all of the resources available to you including:
- Friend recommendations
- Office awards and accolades
- Real estate agent recommendations
- Internet recommendations
Contact us for a SourceOne Property broker recommendation.
How much home can I afford?
To determine your maximum mortgage amount, lenders look at:
- Your credit history
- Available cash for down payment and closing costs
- Your income
- Your existing debt and financial obligations
- Job History – 2 years in same line of work
Your maximum mortgage amount, plus your planned down payment, equals your home-purchase price range.
How important is my credit?
A history of paying monthly payments on time indicates you are likely to make mortgage payments on time. Your credit score will be a factor in the kind of mortgage program for which you may qualify.
Your credit history can also affect:
- The amount required for a down payment
- The amount of money you can borrow in relation to your income
- The interest rate you are offered
How much do I need for a down payment?
A typical down payment in Tulsa County is 20-25% of the home's value but in today's environment some homebuyers may be eligible for down payment assistance and you may be able to buy a home with very low or no down payment. However, loans with down payments of less than 20% typically require mortgage insurance.
Should I wait until the market goes down?
It may go down some more but there is no guarantee the home you like in the area you want will be available. Buy what you like and plan to keep it for 3 years and you will be ahead between the write-off on taxes and your peace of mind you receive from being settled.
What are closing costs in Tulsa County?
Generally, closing costs in Tulsa equal between 1%-2% of the home purchase price.
Closing costs vary based on a variety of factors, but they usually include:
- Lender fees: Your mortgage company may charge for expenses related to making the loan, including an appraisal fee, a credit report fee, origination points, and discount points.
- Third party fees: Charges for services not provided by your lender often include the settlement fee, title insurance, and attorney's fees.
- Prepaid items: This is the largest closing cost. Certain mortgage costs must be paid to your lender in advance. Some of these fees can be financed.
How large a loan can I be approved for?
Lenders use a variety of items to determine your loan eligibility including your income, job security, savings, credit history, and the property value. Once you know your maximum loan amount, it's up to you to decide if it's right for you.
What will my mortgage payment include?
Usually your monthly mortgage payment is made up of four amounts – often referred to as PITI:
- Principal
- Interest
- Taxes
- Insurance
How does an escrow account work in Tulsa?
An escrow company is attached to a title company in this area and it is a neutral depository for your transaction. They are the third party who handles the legal transfer of all funds and loan documents associated with a transaction. Fees are on a sliding scale and first time home buyers receive a discount.
How much should I offer?
There is no all-encompassing answer to this question. It is best to speak with your real estate professional regarding your specific situation. When your agent or broker is pricing your home, make sure to ask:
- What are comparable homes asking price and historical selling prices?
- How is the condition of the home?
- How long has the home been on the market?
- Have there been any recent price reductions?
- How much you can afford?
- How much you really want the home?
What happens if my offer is rejected?
Offers are often rejected but a rejection is often an open invitation to negotiate. If you chose your real estate broker wisely they will be an enormous help here. More money is not always the only option; occasionally you can ask the seller to cover some of the expected repairs and closing costs. Negotiations often go back and forth several times before a deal is made.
What is "Pre-Approval"?
"Pre-approval" means that you have met with a loan officer, your credit files have been reviewed and the loan officer believes that you can readily qualify for a given loan amount with one or more specific mortgage programs. The lender will then provide you with an approval letter which will show your buying power.
Will I have to pay for Private Mortgage Insurance (PMI)?
Private Mortgage Insurance (PMI) provides your lender with a way to recoup its investment if you are unable to repay your loan. PMI is usually required when the mortgage amount is higher than 80% of the home's value.
Which type of loan is right for me?
The best way to match your needs to the perfect loan is to work with an experienced mortgage specialist. Ask your advisor for a Good Faith Estimate (GFE) to get an idea of the type and amount of loans that they offer.
Should I choose a fixed-rate or adjustable-rate loan?
Fixed-rate mortgages have an interest rate that never changes and your payments remain stable throughout life. Adjustable-rate mortgages (ARMs) have an interest rate that changes at regular intervals based on a market index.
Generally it is best to select a fixed-rate mortgage when you plan to stay in your home long term and/or rates are low. Select an ARM if you plan on staying in your home short-term and/or rates are relatively high.
Should I lock my mortgage rate?
Locking in your interest rate depends largely on the market and where you think rates will go. If you are in a rising interest rate environment then it is usually a good idea to lock in your rates. Please note that if rates drop during the lock-in period you are not allowed to switch to the lower rate.
Where can I search for a house?
This site has been created to make buying a home in Tulsa County easier. You can easily search local MLS listings or browse by community. We have the area's most advanced search engine for Tulsa Real Estate. Our users also have the ability to create a login and save their searches and preferences.
For a more customized search contact us and we can assist you with all of your search requests.
How long does it take to fix bad credit?
The type of negative credit records determines how long they will stay on your credit report. For example: a bankruptcy remains in your record for 10 years and bills that go to collections remain on your credit 7 years. However, their effect on your score decreases over time. So you don't have to wait 10 years before considering home ownership.
Have More Questions?
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