Do first-time homebuyers really need 20% down?
"The biggest misconception is feeling like they need way more money than they actually do to get into a property. People don't realize the minimum on an FHA loan is 3.5% down, and there are down payment assistance programs available at the federal and local level too — those are a little harder to come by, and that money tends to go fast. On top of that, they're often not aware they can ask the seller for closing cost assistance, which significantly reduces the cash they have to bring to the table. A lender can walk you through exactly what you qualify for, but the short version is: it's almost never 20%."
What does that actually look like in real numbers?
"I met with a couple who were convinced they needed 20% down because they wanted to avoid PMI. When we sat down and reverse-engineered the math against their monthly budget and current savings, they could actually get into the property with less than 5% out of pocket. That was huge for them — it meant they didn't have to spend another year renting."
What's something buyers don't realize they can negotiate?
"Help covering the cost of breaking a lease. If someone has six or seven months left on their lease and it would cost them one or two months' rent to get out of it, some sellers will actually cover that as part of the deal — especially in a market where buyers are harder to come by. It's not something most first-time buyers think to ask for, but it can make the difference in whether they buy now or wait another year."
What's the biggest mistake first-time buyers make?
"Not starting the process early enough. People think they should wait until they're ready to buy, but you should start as early as possible — seeing homes, learning the market, figuring out what you do and don't like. The mistake usually doesn't cost people money. It costs them time."
The one thing to remember
Stephen's advice: get in touch with a realtor as soon as possible and have them connect you with a lender, so you understand what a purchase actually looks like and what it would cost you. Once you know your budget, you know what price points and homes to look at — and you're ready to go.
If you're a first-time buyer in Tulsa wondering where to start, reach out to MORE Agency for a no-pressure conversation about what's actually possible for you and he can help connect you to the right resources.
