Best Mortgage Lenders for First Time Home Buyers in Oklahoma

Did you know most of our readers prefer Rocket Mortgage® for their mortgage needs?

As a first time homebuyer in Oklahoma, you may be wondering how the mortgage process works and what the best mortgage companies are. Read on to learn more about how to find the best mortgage for you.

Quick Look: Best Mortgage Lenders in Oklahoma

• Best Overall in Oklahoma: Rocket Mortgage®
• Best for In-Person Customer Service: Bank of America
• Best for First Time Home Buyer Programs: Wells Fargo
• Best for VA Loans: Veterans United
• Best for Self-Employed: CrossCountry Mortgage
• Best for Lender Comparison: Credible Mortgage
• Best for Credit Monitoring: loanDepot

7 Best Mortgage Lenders in Oklahoma for First Time Home Buyers

Mortgage lenders today recognize the need for specialized assistance for first time buyers. Some of our favorite lenders for first time buyers include:

Rocket Mortgage® is a completely digital mortgage lender. It offers simplified preapproval and loan application processes to make getting a mortgage less stressful for borrowers.

Rocket Mortgage® also offers a mobile app to make the process even more accessible for borrowers on-the-go. You can expect customized mortgage solutions and responsive customer service from this lender.

• Loan types offered: Conventional, FHA, USDA and VA
• Credit score requirement: 620
• Average days to close a loan: 30-45 days

2. Best for In-Person Customer Service: Bank of America

Bank of America is a longtime, reliable lender that offers the benefits of online and in-person mortgage processes. You can get preapproved for your mortgage online, however, most of your mortgage process will be completed with a loan officer in one of Bank of America’s branch locations.

This allows you to receive more personalized experience and answers in real-time.

• Loan types offered: Conventional, FHA, USDA and VA
• Credit score requirement: 620
• Average days to close a loan: 30-45 days

3. Best for First Time Home Buyer Programs: Wells Fargo

Like Bank of America, Wells Fargo can offer the benefits of both online and in-person mortgage processes. Wells Fargo offers specialized mortgage products, including the First Mortgage loan program.

This program is for first time buyers with low-to-moderate incomes. The benefits of this program include down payments as low as 3% and a $750 credit toward your closing costs if you complete a homebuyer education course.

• Loan types offered: Conventional, FHA, USDA and VA
• Credit score requirement: 620
• Average days to close a loan: 30-45 days

4. Best for VA Loans: Veterans United

If you’ve logged some time in the military, Veterans United’s loans will likely be the best deal. Unlike other veteran-marketed loan programs, Veterans United only accepts active duty and veteran military members.

In addition to no-down-payment loans, you’ll also eliminate the private mortgage insurance you’ll have to pay with other mortgages.

Veterans United is also more forgiving of lower credit scores. Interest rates are lower than average.

• Loan types offered: VA, USDA, FHA and Jumbo
• Minimum credit score: 620
• Average days to close a loan: 30

5. Best for Self-Employed: CrossCountry Mortgage

Qualifying for a mortgage loan as a business owner, freelancer or other types of self-employed individual can be tough. Most mortgage lenders want to see that you have consistent, documented income before they’ll issue you a loan. If you’re self-employed, your income likely varies wildly by year, season or even month. 

CrossCountry Mortgage’s Asset Qualifier home loan program makes it easier for self-employed men and women to get a loan. With an Asset Qualifier loan, you can use the sum of your assets in order to qualify for your loan instead of only your annual net income. This can be hugely beneficial for business owners who have invested a large amount of money into their assets but whose income fluctuates frequently. You can get a loan for up to $6 million with an Asset Qualifier loan, and you can even qualify with a score as low as 580.   

• Loan types offered: Conventional, FHA, USDA and VA
• Credit score requirement: 580
• Average days to close a loan: 21

6. Best for Lender Comparison: Credible Mortgage

Unlike individual mortgage lenders, Credible is a lender marketplace that allows you to compare multiple lenders. You'll enter basic financial information and get quotes from several lenders on standard home mortgage products. Credible offers a free, fully online mortgage broker service that lets you get quotes from online lenders. It offers straightforward, convenient service with the possibility of finding the lowest interest rates.

• Loan types offered: Conventional, FHA, VA USDA and Jumbo
• Credit score requirement: 620 (depends on the lender)
• Average days to close a loan: 30 - 45 (depends on the lender)

7. Best for Credit Monitoring: loanDepot

loanDepot is a non-bank lender that gives you convenience and efficiency online with the option to visit one or over 200 branches across the country. loanDepot offers fixed-rate and adjustable-rate conventional mortgages. You could also secure jumbo, FHA or VA loans, although conventional loans made up most of LoanDepot’s mortgage originations last year. LoanDepot also offers 10-, 15-, 20- and 30-year mortgage terms. 

In addition to mortgages and home refinancing, LoanDepot offers free credit score monitoring to help you prepare to apply for a mortgage. You'll need at least 5% downpayment. 

• Loan types offered: Conventional, FHA, VA, and Jumbo
• Credit score requirement: 620 (depends on the lender)
• Average days to close a loan: 30 days (depends on the lender)

The Housing Market in Oklahoma: An Overview

The housing market in Oklahoma is on an upswing. Home values are rising, and there are many opportunities for buyers and sellers alike.

Total households: 1,522,711

Median list price: $199,378

3 most expensive cities in Oklahoma to buy:

• Nichols Hills: $868,642
• Goldsby: $402,509
• Cleora: $342,370

3 most affordable cities in Oklahoma to buy:

• Duncan: $114,084
• Ponca City: $120,076
• Enid: $120,167

Preparing for a Mortgage

The mortgage process can be intimidating. It’s important to find lenders and loan officers who can provide you with the customer service and support you need to feel comfortable in your mortgage decisions. 

Before you start, consider your finances and what you need in a home. One thing to consider is your debt-to-income ratio. You can calculate this by dividing your monthly debt payments by your gross monthly income. 

If you plan to buy a home that you’ll stay in for the long term, consider what you’ll need from it in the years to come. If you want a home you only plan to stay in for a few years, you might be more flexible with what you need. This will also steer you to the right mortgage type for your situation. 

Credit Report

You’ll also want to take a look at your credit report. Your credit report summarizes your debts, credit lines and your credit score. Lenders use your credit score to determine your eligibility for a mortgage and your interest rate. Your lender wants to see that you’ve made on-time payments and have a credit history to show that you’re a responsible borrower. 

With this information, you should be ready to get a purchase quote for a home loan. After this, you’ll want to gather the documents you need to receive a preapproval on a mortgage. Most lenders require:

Income Information

Lenders want to see proof of reliable employment history and the ability to afford your mortgage. It’s a good idea to get together your W-2 forms, tax returns and pay stubs from the past 2 years.

Proof of Assets

Beyond income, lenders also want to see that you have other assets available to pay your mortgage even if you lose your employment. You can submit statements from your checking, savings, retirement and investment accounts to prove you have other financial resources. If you own a vehicle or any other valuable items, you can submit this information to the lender.

Court Documents

If you have a court order to make or receive any other payments, lenders want to see these. One of the most common examples is a Judgement of Divorce, and paying or receiving alimony or child support. 

Mortgage Options

Next, you’ll want to explore your mortgage type options. This will help you determine which mortgage types you may be eligible for. Some mortgage types can help save you money over the lifetime of your loan.

Conventional Loans

Conventional mortgages are the most easily accessible mortgage type. They have fewer eligibility requirements than other mortgage types and are offered directly from lenders. Conventional mortgages come in a number of terms, including fixed and adjustable rates that can vary between 5 and 30 years.

FHA Loans

FHA mortgages are part of a mortgage insurance program offered by the Federal Housing Administration. FHA loans are an attractive option for many buyers and especially for first time homebuyers. One of the benefits of FHA loans is that they typically have a lower requirement for minimum down payments.

USDA Loans

USDA mortgages may be an option for you if you’re planning to buy a home in what is considered a qualified rural area. These home loan programs are offered by the U.S. Department of Agriculture to promote rural homeownership. Eligibility requirements for USDA loans include income thresholds. Your adjusted household income cannot exceed 115% of the area’s median income. 

VA Loans

VA loans are offered by the U.S. Department of Veterans Affairs to qualifying military members and their families. The benefits of VA mortgages are wide-ranging and include the ability to finance 100% of your home purchase. This means that if you choose a VA mortgage, you will not need to make a down payment on your home. 

Jumbo Loans

Jumbo loans finance more expensive homes or homes in highly competitive markets. These loans are an option if the price of the home you’re looking to buy exceeds the maximum financing limit set by the Federal Finance Housing Agency. Most lenders require higher credit scores and incomes for jumbo mortgages.

First Time Home Buyer Programs in Oklahoma

Luckily, if you’re a first time homebuyer in Oklahoma, there are a few programs available to you. Oklahoma-specific programs include:

OHFA 4Teachers

This home loan program is available to first time buyers who are teachers in the state. To qualify, you must hold a current Oklahoma State Department of Education Teaching Certificate and be under contract with an accredited school. The program also requires that your credit score is 640 or above and your debt-to-income ratio cannot exceed 45%. There may also be limits on your income and the purchase price of your home.

OHFA Gold

The OHFA Gold program offers down payment assistance of up 3.5% of your home purchase. Requirements of this program include a minimum credit score of 640 as well as income and purchase price limits. Your mortgage also cannot exceed a debt-to-income ratio of 45%. 

OHFA Shield

The OHFA Shield program is available to first time buyers who are current Oklahoma firefighters or law enforcement officers. The program offers low interest rates and down payment assistance of up to 3.5%. To qualify, you must have a credit score of 640 or above and a debt-to-income ratio that does not exceed 45%.

Current Mortgage Rates in Oklahoma

Mortgage rates are the interest rate that you will be paying along with the principal payments on your mortgage. This rate will be set by your lender when your financing is finalized. Your mortgage rate is based on a number of factors, including your credit score and the mortgage type you choose. 

If you select a fixed-interest rate, your mortgage rate will not change throughout the entire lifetime of your loan. However, an adjustable interest rate will fluctuate depending on the current housing market and economy. If the economy is doing well and there is competition for mortgages, interest rates may increase. If the housing market has slowed down, you may find that interest rates decrease.

Benzinga monitors current mortgage rates and routinely updates this chart to reflect the most recent data.

Closing a Mortgage

When you’ve found the right home for you, you’ll make an offer to the seller. Once your offer has been accepted, you then enter the negotiation stage. During this time you arrange a home inspection and appraisal. These identify any issues in the home that should be addressed. You can negotiate with the seller to determine which issues are their responsibility to fix and what condition the home should be in before it becomes yours. 

You’ll also set a closing date during this stage. Before your closing date, you will secure and finalize financing with your home loan lender. You’ll also make your down payment and any other required payments at this time. In the days before your closing date, you will need to perform a final walkthrough of your home to confirm the home’s condition is what you had originally agreed upon. Finally, on your closing date, you will receive your keys and the home will be yours!

Which Mortgage is Right for You?

If you’re ready to begin the mortgage process, you’re on the right track. There are several mortgage options available to first time buyers no matter what your circumstances are.

If you need help figuring out which mortgage type is right for you, you should reach out to a loan officer. Each lender has loan officers that can work with you to determine which mortgage types you’re eligible for and what will work best for you. 

Frequently Asked Questions