First-Time Buyers

Glossary

Real estate, defined.

The essential 69 real estate terms a buyer, seller, or investor in Oklahoma will actually run into. Search by keyword or jump to a letter. Oklahoma-specific notes where relevant.

A B C D E F H I L M N O P R S T U V W Z

A

Abstract of Title

A complete history of recorded ownership and claims on a property. Still used in Oklahoma — your title company will examine one before closing.

Adjustable Rate Mortgage (ARM)

A mortgage where the rate changes after an initial fixed period. Common structure: 5/1 ARM (fixed 5 years, then adjusts yearly).

Amortization

How a loan gets paid off over time. Early payments are mostly interest, later payments are mostly principal.

APR (Annual Percentage Rate)

The true cost of a loan including interest and fees. Always higher than the quoted rate. Use this to compare lenders.

Appraisal

Independent professional opinion of a property's value. Required by lenders before closing. Costs $400-600.

Appreciation

How much a property's value grows over time. OKC metro typically averages 4-6% annually.

B

Backup Offer

A second-place offer that activates if the primary contract falls through.

Buyer's Agent

The agent representing the buyer's interests. Negotiates price, terms, and inspections on your behalf.

Buy-Down

Paying extra at closing to lower your mortgage rate. Common in 2025 (often paid by the seller as a concession).

C

Cap Rate

Net operating income divided by purchase price. Investment property comparison metric. OKC typically 6-9%.

Cash-on-Cash Return

Annual cash flow divided by cash invested. Measures real return on the money you actually put down.

Closing

The final step where ownership transfers and funds change hands. In Oklahoma, conducted at title companies.

Closing Costs

Fees paid at closing beyond purchase price. Buyers: 2-5% typical. Sellers: 6-10%.

Closing Disclosure (CD)

Federally required form showing final loan terms and closing costs. Must arrive at least 3 days before closing.

Comparable Sales (Comps)

Recently sold similar properties used to estimate value. Best within 1 mile and last 90 days.

Contingency

A condition that must be met for the deal to proceed. Common: inspection, financing, appraisal.

Conventional Loan

A non-government-backed mortgage. Typically requires 5-20% down and stronger credit.

Counter Offer

A response to an offer with different terms. Negotiation often takes multiple rounds.

Credit Score

300-850 score summarizing credit history. 740+ gets best rates; 580 minimum for FHA.

D

Days on Market (DOM)

How long a property's been listed. OKC averages 30-45 days. Longer often means it's overpriced.

Debt-to-Income Ratio (DTI)

Monthly debt divided by gross monthly income. Lenders want this below 43%.

Deed

The legal document transferring property ownership. Recorded at the county clerk.

Down Payment

Cash paid upfront. Conventional: 5-20%. FHA: 3.5%. VA/USDA: 0%.

E

Earnest Money

Good-faith deposit when submitting an offer. Typically 1-2% of price in Oklahoma. Held in escrow.

Easement

Legal right for someone (often a utility) to use part of your property for a specific purpose.

Equity

Your home's market value minus what you owe on it. Grows through appreciation and paying down principal.

Escrow

Third-party account holding funds during a transaction. Also: ongoing account for property tax and insurance.

F

Fair Market Value (FMV)

What a property would sell for between a willing buyer and seller.

FHA Loan

Government-insured mortgage with low down payment (3.5%) and flexible credit requirements.

Fixed Rate Mortgage

A mortgage where the rate stays the same for the entire term. Most common in 2025.

Foreclosure

Legal process where a lender takes ownership after the borrower defaults.

FSBO (For Sale By Owner)

Selling a home without a listing agent. Saves commission but typically nets less because of pricing and marketing complexity.

H

HOA (Homeowners Association)

Organization that enforces neighborhood rules and maintains common areas. Charges monthly or annual dues.

Homestead Exemption

Oklahoma property tax break — reduces taxable value by $1,000 (or $2,000 for lower-income owners). Apply by March 15 of year following purchase.

I

Inspection

Professional evaluation of a property's condition. Buyer pays $350-500. Critical step — don't skip it.

Inspection Period

The contractual window (usually 7-10 days in Oklahoma) to inspect, negotiate repairs, or back out.

Interest Rate

Annual percentage charged on a loan. Doesn't include fees (use APR for total).

L

Lender's Title Insurance

Required title insurance for the lender's interest. Paid by buyer.

Lien

Legal claim on a property for unpaid debt. Must be cleared before clean title can transfer.

Listing Agent

The agent representing the seller. Markets the property and negotiates on seller's behalf.

Loan Estimate (LE)

Federally required 3-page lender disclosure showing loan terms and closing costs. Provided within 3 days of application.

Loan-to-Value Ratio (LTV)

Loan amount divided by property value. 80% LTV = 20% down.

M

MLS (Multiple Listing Service)

Database where licensed agents list properties for sale. Oklahoma's primary is MLSOK.

Mortgage

A loan secured by real estate. Lender holds a security interest until the loan is paid.

N

Net Operating Income (NOI)

Annual rental income minus operating expenses (excluding mortgage). Key investment metric.

O

Offer

Formal written proposal to purchase a property at specific terms.

OHFA

Oklahoma Housing Finance Agency — offers down payment assistance for qualifying first-time buyers.

Owner's Title Insurance

Optional but recommended insurance protecting buyer's ownership rights. One-time cost at closing.

P

PITI

Principal, Interest, Taxes, Insurance — the four components of a monthly mortgage payment.

Pre-Approval

Formal commitment from a lender to loan a specific amount based on verified docs. Stronger than pre-qualification.

PMI (Private Mortgage Insurance)

Required on conventional loans when down payment is less than 20%. Drops off automatically at 22% equity.

Points

Fees paid upfront to lower your interest rate. 1 point = 1% of loan, typically reduces rate by 0.25%.

Principal

The original loan amount, or the portion of your monthly payment that reduces what you owe.

Property Tax

Annual tax based on property value. Oklahoma effective rate typically 0.85-0.95% of market value.

Purchase Agreement

The legal contract between buyer and seller. Also called Real Estate Contract.

R

REALTOR®

An agent who's a member of the National Association of REALTORS® and follows its Code of Ethics.

Refinance

Replacing your existing mortgage with a new one. Usually for a lower rate or to pull out equity.

S

Seller Concession

Money the seller agrees to pay toward the buyer's closing costs. Common in slower markets.

Seller's Disclosure

Required form where the seller discloses known property defects and history.

T

Title

Legal ownership of a property.

Title Insurance

Insurance protecting against losses from defects in title (forged signatures, missed liens, etc.).

Title Search

Review of public records to confirm clean ownership and find any liens. Done before closing.

U

Underwriting

The lender's process of evaluating your loan, credit, income, and the property. Takes 1-4 weeks.

USDA Loan

Government-backed mortgage for rural and some suburban areas. 0% down. Income limits apply.

V

VA Loan

Mortgage for eligible veterans and active military. 0% down, no PMI. Major benefit for Tinker AFB families.

W

Walk-Through

Final inspection right before closing to confirm the property's condition hasn't changed.

Warranty Deed

The most common Oklahoma deed type. Guarantees clear title and defends against future claims.

Wire Fraud

Common scam where hackers send fake wire instructions for closing funds. Always confirm wire details by phone (using the title company's published number, not email) before sending money.

Z

Zoning

Local rules controlling how a property can be used — residential, commercial, agricultural, mixed-use.

No terms match your search. Try a broader keyword.

Real estate, defined.

A

B

C

D

E

F

H

I

L

M

N

O

P

R

S

T

U

V

W

Z

Work with me

Resources