If you’ve contemplated buying a new home, you’ve probably heard stories about bad experiences. But at Beacon Homes, we do things differently. We understand that as you start your new home journey, you may feel thrilled, nervous, and even overwhelmed. Not to worry. For 20 years, Beacon Homes has helped hundreds of families navigate through the process of how to buy a home, listening carefully and providing guidance along the way.
Your First Month’s Mortgage Payment Is On Us If We Don’t Deliver!
Along with state-of-the-art materials and energy efficiency, one of the most important benefits of choosing Beacon Homes is our dedication to our homes and our homeowners. And one of the ways we show that is with our Beacon Guarantee.
The two primary concerns we hear from prospective buyers are that building a home is going to end up costing way more than they expected and that the home buying timeline will take much longer than they expected.
The Beacon Guarantee is our commitment to delivering your home on time and at an unchanging price or we will pay your first month’s mortgage payment. (At this time, The Beacon Guarantee applies just to to-be-built homes for sale in Oklahoma City or Tulsa.)
The Beacon Guarantee offers you peace of mind knowing that:
- your home price isn’t going to change. (Unless you add upgrades, of course!)
- your build won’t drag on forever! You will move in on or before your Beacon Guarantee Date or we will pay!
Speaking of the payment…
Our payment covers the Principal and Interest only. Principal is the amount of money you borrow when you originally take out your home loan; interest is the money you pay to your mortgage lender in exchange for giving you a loan.
Principal and interest make up the bulk of a mortgage payment. But a loan might also involve taxes and insurance. Lenders typically combine principal, interest, taxes, and insurance (PITI) when determining how much house they will approve you for.
Taxes. No matter where you live, you’ll pay property taxes. Property taxes go to your local government and fund things like public schools, roads, fire departments and libraries. The amount you pay depends on the value of your home and the local amenities your community offers.
Insurance. Most mortgage lenders won’t give you a loan without insurance. Homeowners insurance protects against damage from fires, break-ins, and lightning storms, just to name a few examples. You may need an additional policy to protect from damage caused by flooding and earthquakes.
Tips for Buying A Home in Oklahoma
If you’re exploring the option of buying a new home in Oklahoma City or Tulsa, chances are you’ve got some questions about how it all works. We know the process can be tricky. There are a few things you need to do to prepare, but the biggest ones are to get your financial ducks in a row and have your paperwork in order.
- Check your credit score. The three credit bureaus are each required to give you a free credit report once a year. Avoid last-minute surprises by checking your score long before you make an offer. And work diligently to correct any mistakes.
- Determine what you can afford. Lenders will lend you as much as your debt load allows, typically no more than 43% of your gross monthly income (called the debt-to-income ratio). There are online calculators to help you determine what you can afford.
- Have a plan. Most conventional mortgages require a 20% down payment. There are also alternatives. The FHA offers loans with lower down payments. HUD offers a variety of programs by state. When planning your saving strategy, remember that banks like to see stable funds in your account for 60 to 90 days before applying for a loan.
- Get your documentation together. Banks are very particular about mortgages. They require a lot of paperwork. Collect these documents before you need them. It will make life so much easier.
- W-2 forms — or business tax return forms if self-employed — for the last two to three years
- Personal tax returns for the past two to three years
- Most recent pay stubs
- Credit card and all loan statements
- Bank statements
- Addresses for the past five to seven years
- Brokerage account statements for the most recent two to four months
- Most recent retirement account statements, such as 401(k)
- Get pre-approved. Make an appointment with your lender or mortgage broker. Bring all your paperwork. He/she will run a credit check and tell you how much loan you’re approved for.
- Start shopping. Once you’re pre-approved, you will be able to look for homes that meet your priorities and your price range. And you won’t waste time looking at or making offers on homes you can’t afford.
- Prepare for Closing Day! Before you arrive, there are a few items you’ll want to bring:
- Photo Identification – a driver’s license, passport, or government-issued photo ID
- Final Payments/Closing Costs – confirm with escrow company how these should be paid
- Proof of Homeowners Insurance
- Closing Disclosure – compare this with the final paperwork
- Home Inspection Reports
What Else Is There to Know About How To Buy A Home In Oklahoma?
When it comes to buying a home in Oklahoma, there are some other considerations for homebuyers:
Down payment assistance
There are several down payment assistance (DPA) programs that are geared toward first-time and low-income homebuyers. Eligible buyers may be able to receive a grant or second mortgage that can help them afford closing costs or a down payment. Here are just a few resources for OK residents:
OHFA Homebuyer DPA Program
The Oklahoma Home Financing Agency (OHFA) offers its OHFA GOLD program and OHFA DREAM program to eligible homebuyers. Both programs offer 3.5% down payment assistance to repeat and first-time buyers. To be eligible, you must have a credit score of at least 640 and not exceed household income limits and or the maximum purchase price in your region.
REI DPA Program
The non-profit organization REI Oklahoma offers a DPA program for residents across the state. Financial assistance can reach up to 5% of the total loan amount for borrowers with an FHA, VA, Freddie Mac HFA Advantage loan, or a rural development loan. To be eligible, your credit score must be at least 640, and you cannot exceed the maximum purchase price or household income limits.
Beacon Offers The Best Homes for Sale in OKC and Tulsa!
If you are ready to make a move to OKC or Tulsa, then there is no question that it is a great time to buy. (After all, there is no guarantee that tomorrow, next month, or next year will be better than today!)
When you are ready to buy, we are ready to build! We have homes for sale in OKC and homes for sale in Tulsa. Contact us today to learn more about our process and move into the Beacon home of your dreams sooner than you expected.
