Let’s face it ? trying to scrape together enough money for a down payment for your first Oklahoma City home can be difficult at the best of times. This does not mean to say, however, that it cannot be done. Most people find a way to come up with a down payment for a their first home when they are serious about getting out of the rental marker and into the freedom that comes with owning a home. If you really want to own your own home, you can find a way to get that down payment.

Here are a few tips you can use to help you budget for the down payment.

1. Figure out how much you will need

If you are planning to purchase your first Oklahoma City home in two years, for example, take a look at the price you’d like to pay and how much of a down payment you’ll need. Factor in the inflation rate when you’re looking at the total price of the home. Once you have an idea of the down payment you’ll need, you’ll have a stable base to work with.

2. Crunch the numbers

Don’t even take a look at your income right now. The first thing you need to do this determine how much money you’ll have to put away every month to reach the final figure in two years. The reason why you don’t want to look at your income at this point is you might get discouraged and figure that you won’t be able to make it in a short amount of time. Now is not the time to get discouraged – you’re just getting started! Just get an amount down on paper of how much you would have to save every month to get that down payment for your first Oklahoma City home in place.

3. Figuring out solutions

Now it’s time to look at how much money you are currently earning. Don’t take a look at your budget as far as whether you can afford to put the required monthly amount away. Instead, examine how much of your income can go towards this amount.

Take the difference between how much you need and how much you can contribute every month and then look at solutions. This is what people do when they are serious about putting together a down payment for a first Oklahoma City home. They don’t look at the stops, they look at solutions.

At this point, if your income cannot handle the amount you’d need every month to put together a down payment for two years, you have two options. Either you can raise your income or lower your expenses. In some cases you have to do both. Now is the time to get bright and figure out how to get this extra money. There is a way, even if you haven’t seen it yet.

By now you will have worked out a budget and need to look at your income solutions. Getting a down payment together for your first Oklahoma City home does involve some effort and you’ll need to be prepared to do some extra work, if necessary, to put it all together.

Let’s face it. Buying your first Oklahoma City home can be a bit unnerving, to say the least. This is a commitment that needs to be made for the long-term and a lot of thought needs to go into it. Not to mention money!

Here are a few things that you can do to settle yourself down and come to terms with buying your first Oklahoma City home.

1. Don’t panic

Don’t let your emotions get in the way of a logical decision. Breathe and relax. Think of the benefits of owning your own home and release the panic. Most of your thoughts may be focused on the “what ifs”, such as “What if I lose my job and can’t afford the mortgage?” or “What if I get injured and can no longer work?” You’ll have to deal with these “what ifs” during many stages of your life and if you fall prey to them now they can stop you from accomplishing a great many things. After all, isn’t life itself a big “What if?”

2. Learn everything you can

Fear of the unknown is a heavy burden to bear. Most of the problem that you are dealing with stems from the fact that you have unanswered questions or certain things that you may not fully understand about the real estate process.

Sit down with your real estate agent before buying your first Oklahoma City home and find out everything you can about it. The more you learn the better able you’ll be to make a well-informed decision about a house purchase.

3. Talk it out

The best way to get rid of your fear is to talk it out with your Oklahoma City agent. He has dealt with this fear with many other clients and understands exactly what you are going through. Be up front and ready to discuss them in order to get them under control.

If you’re afraid of stepping forward and buying your first Oklahoma City home, understand that almost anyone making this decision is in the same boat. The difference is always how you choose to handle it.

If you are weighing your options as far as buying vs renting Oklahoma City real estate you should carefully consider all aspects of the debate. Depending on your financial situation, your choices should be fairly straightforward.

Reasons to rent

Renting a home means that you will have no major renovations or maintenance to do in the house. You will not be held responsible for major damage, unless you have caused it as a tenant. This means that you do not have to worry about large and small expenses arising with little or no warning, causing you personal financial distress. Also, you do not have to worry about making a down payment, other than first and last month’s rent. This is better for people that have less money saved up or cannot get approval for a mortgage.

Reasons not to rent

There are a lot of reasons that you should not rent a house. For starters, you cannot do any major changes to the premises without prior consent from the owner. This can be a hassle for even the smaller things like adding a backyard patio or even changing the color of your house. You also will be paying into something with no long-term results. At the end of your lease you will have nothing to show for the thousands you have spent other than the memories accumulated over the time spent in the residence.

Reasons to Buy

The best reason to buy a house is you will actually end up owning something and will have a large asset that you can pass down to your children or other relatives. Unlike renting, when you pay your monthly mortgage bill you will actually be reducing your debt on the house until you hit a point where it is entirely yours. You can also make changes and do small renovations at your own pace without first getting permission from a landlord. Larger renovations may require a city permit. Owning a home means that you can use it as collateral to make other large purchases on credit, such as an investment property or car.

Reasons Not to Buy

If you do not have any financial security or the funds required to make a down payment you should not buy a house. You need to have a steady income and money saved up to make a deposit towards the total amount owed on the house. When looking at your options in regards to buying vs renting Oklahoma City real estate you should take a good hard look at your financial situation since this is one of the most influencing factors that will lead you towards your final decision.

Many first time homebuyers will rush into an Oklahoma City real estate agreement without thinking things through and this can end up being disastrous. Without properly assessing the residence or property first you could lose a significant amount of money. It is very common to see homebuyers simply fall in love with a house and purchase it without getting it properly inspected. In some cases the new homeowner may end up being stuck with a house that is beautiful on the outside but failing apart behind the walls.

Here are some of the other common mistakes that many buyers make when purchasing a new Oklahoma City home.

Not finding the right mortgage

Having the right financial institution to back you up financially can save you thousands of dollars over the course of years of payments. Most Oklahoma City homebuyers do not have the means to make a purchase on their own, which means that they will have to obtain a mortgage and pay it off over a certain number of years with interest. Never take the first mortgage offer you encounter. Always compare mortgages and consider using a mortgage broker. He will do the comparison shopping for you and in many cases find a deal you may have missed otherwise.

Failure to get the home inspected

This can be a very big mistake for first time and experienced homebuyers alike. Home inspections will reveal the good and the bad aspects of the house. You have to know the state of the Oklahoma City home before putting any money down. There is always the chance that there is underlying structural damage.

Property taxes

You need to learn about the property taxes you are going to have to pay once you own the home. There are a lot of costs involved in owning and maintaining a home and Oklahoma City property tax is one of them. You’ll need to make sure that your budget can accommodate these extras.

These are the common mistakes many people make when searching for Oklahoma City real estate. Take the time to learn about your taxes, get a home inspection done and shop around for the best mortgage. All of these things can end up saving you thousands of dollars in the long run.

For a first time Oklahoma City homebuyer, buying a home elicits emotions of fear and excitement. Buying is a long-term expensive venture. You need to be well prepared in order to make a wise investment decision and arm yourself with important knowledge on real estate pricing, bank regulations and mortgage requirements in order to make a wise investment choice.

Here are some tips that can help you along.

Don’t settle for less

Price is not the only factor to consider when it comes to a purchasing a home. The quality of the home is a very important consideration. You may be tempted to get a better deal as you are shopping but if the house has problems that you really aren’t equipped to handle then you’re not really getting much of a deal anyway.

Read everything before you sign

It is common for first time Oklahoma City homebuyers to simply skim through any paperwork that appears complicated and lengthy. Don’t be one of them. If it takes you half an hour to go through the paperwork, take the time. Be sure to ask any questions you have as well. It is your responsibility to know and understand everything you sign and if anything happens later you cannot use the excuse that you did not read a document. A lawyer and real estate agent can help you understand the technical aspects of any documents.

Present your Case

The circumstances of every Oklahoma City homebuyer are different. The bank or lending institution should consider this carefully. Is the buyer purchasing the home for his own occupation or for a rental? This helps the bank decide on the interest rate and how best to handle the homebuyer.

Mortgage Analysis

The bank will offer you a mortgage based on many different factors. They may pre-approve you for a loan based on an amount they feel you can afford to pay back. Remember that this is the bank’s assessment of what you can afford – not yours. Don’t pick out a house based on what the bank says you can spend on one. Crunch some numbers and come up with a reasonable amount on your own and then start looking.

Hidden Charges

A first time Oklahoma City homebuyer should be quick to note any hidden charges relating to a mortgage. Insurance, commissions, lawyer’s fees etc are additional costs to the mortgage. There are certain costs that you may be able to negotiate and your real estate agent can let you know which ones can be worked with.

Replacement and Repairs

A homebuyer should take into consideration the need to repair and replace certain things in the home that are broken. The buyer and the seller have to agree on who takes care of the bill relating to these items. These can be broken locks, windows, doors or any other outpoints throughout the house. These are all additional costs to the cost of purchasing the home. Any repairs to be undertaken by the seller should be completed before the purchase is finalized.

These tips will help you know what to expect and help you be better prepared when planning your first home purchase. The more you understand about buying a property as a first time Oklahoma City homebuyer the more control you’ll have, and you may end up saving some money in the process.

Below are some of the assistance programs  for buying with down payment assistance or making repairs to your home.  Many of the programs have income, occupancy and home buying status requirements.  I recommend that you contact the people on the website or flyers to dig deeper into the programs to see if you may qualify.  This is meant to be a starting point to assist you in discovering the many programs for home buying assistance.  If you are looking to buy a home feel free to contact me and I will get you in a great home.  Happy House Hunting!

Central Urban Development, Inc.

Building Low Income Housing in North East Oklahoma City.

In April, 2004 the company launched its initial residential project, the construction of thirty new quality homes in the John F. Kennedy (JFK) subdivision. This project is planned for a three-year time frame. The $3 million housing effort is fully supported by private, city and many support organizations whose mission is to see a total revitalization of this quadrant.

The houses are 1,200-1,500 square-feet brick veneer homes each with two-car garages, three bedrooms, two full baths, living/dining room, kitchen equipped with some appliances, laundry room, and spacious closets. The homes are designed to be energy efficient and not burden the owner with maintenance expenses. Our goal is to attract professional families who left for the suburbs back to the inner city neighborhood to increase the social value of the community as well as its property values.

www.cudi.org

Flyer

urban-league

Council Of Neighborhoods

Building low income houses.

www.councilofneighborhoods.org

Flyer

council-of-neighborhoods-programs-and-services

Urban League of Greater Oklahoma City, Inc.

The Housing and Community Development Department provides quality & affordable homes to low to moderate income families by rehabilitating existing structures & constructing new homes.

http://www.urbanleagueok.org/housing.htm

Neighborhood Services Department Housing Programs Division

Grants and interest-free or low-interest Loans to purchase and repair homes

http://www.okc.gov/neighborhood/homes/affordable.html

Weatherization Program

Home repair and weatherization.

http://www.caaofokc.org/index.php?option=com_content&task=view&id=17&Itemid=30

Community Action Agency of Oklahoma

Down Payment Assistance and Closing Costs

http://www.caaofokc.com/index.php?option=com_content&task=view&id=23&Itemid=36

Flyers

community-action

Oklahoma Housing Finance Agency

Down Payment Assistance

http://www.ohfa.org/OHFAAdvantage/homebuyers.htm

Flyer

ohfa-advantage-loan-program

Jefferson Park Neighbors Association, Inc.

Sell remodeled and new homes that qualify for Down Payment Assistance.

http://jeffersonparkok.org/?page_id=36

Map of target areas for down payment assistance programs

City of Oklahoma City Down Payment Assistance Programs

Everybody and their dog from TV and Radio is going to be advising you to go out and buy a house.  If you are smart and in the know you will hear it first here at the Oklahoma City Real Estate Blog. 

The Fed said Wednesday that it would put over a Trillion Dollars into the economy.

$300 Billion Dollars of Long Term Treasuries.

Another $750 Billion Dollars of Mortgage Backed Securities.

Purchase of Freddie and Fannie debt of up to $200 Billion Dollars.

Keep the Fed Fund Rates between 0 and .25 for a long time.

What does this all mean?  It means interest rates are going down and the Fed has got your back.

How do you take advantage of this.  Buy a house and find it quick.  The ridiculously low interest rates along with the First Time Home Buyer’s Tax Credit is going to heat up the market.  The builders have quit building.  There is over three years of pent up demand for housing and when they come flooding back in the supply will not be there.  I know there is a lot of supply but when you subtract all the busted up foreclosure that most do not want or can’t get financing for you have very few houses.  I will say it again there are very few good houses on the market for serious buyers and as the army of sideline buyers enter the game, prices on good homes are going to go up.  So in short, if you do not move quickly you will pay more for your house and you will be talking about the chance that you missed.  If you wait for the statistics to show this or you are waiting for all the reporters to tell you now is the time to buy a house you are going to miss the boat.  If you want to hear someone call a bottom to the housing market.  Here it goes. 

 This is the bottom of the housing market. 

If you buy a house now you will be rewarded.  There you  have it.