If you're looking for a state with southern hospitality and midwestern flair, Oklahoma may be your best bet. Oklahoma is technically a midwestern state, but it is also considered part of the south. If you're considering a move, there's a good chance you may need a vehicle. While public transportation is available, it isn't as common as some of the country's bigger metropolises. 

But if you're looking for more bang for your buck and don't mind the lack of a subway or metro, Oklahoma's housing market may be enough of a draw. Values have been rising steadily since 2012, when they hit a bottom of $92,700 in April of that year. As of August 2012, the median value of a home in the state, according to Zillow, was listed at $119,300. That's well below the national average of $216,700, making the state a very affordable place to own a home. Oklahoma's capital and largest city, Oklahoma City, has become a magnet for young people who used to gravitate to trendy cities such as Seattle, Portland and Austin, but now find themselves increasingly priced out.

Low closing costs represent an additional benefit of planting roots in Oklahoma. Real estate buyers in the state pay much lower fees on average than residents of other states.

Average Closing Costs in Oklahoma

The average closing costs on a $200,000 home purchase in Oklahoma total $1,847. While this number tends to rise as the purchase price goes up, the increase is not proportional, since only some closing costs are variable, and the rest are fixed. Fixed closing costs remain the same whether the purchase price is $50,000 or $5 million.

Compared to national averages, Oklahoma residents enjoy low closing costs. Most states average between $2,100 and $2,300 in closing costs on a $200,000 home purchase. Closing costs are also low compared to neighboring states. Oklahoma borders seven states, all of which have higher average closing costs.

The highest closing costs in the country in 2018 were in New York at $2,648, Hawaii at $2,490 and Delaware at $2,358. Oklahoma's low closing costs were just above the two lowest states, Wisconsin at $1,817 and South Dakota at $1,814. 

What Goes Into Closing Costs

Lender fees make up the bulk of closing costs in Oklahoma, while the remainder come from non-lender or third-party fees. Lender fees are paid to the bank or mortgage company that provides the funds to close. Since cash buyers have no need to involve a lender, they do not have to pay this portion of closing costs. Non-lender fees pay for the services of various other entities involved in a real estate closing, such as the title insurance company, closing attorney, home appraiser and home inspector.

In 2018, lender fees in Oklahoma averaged $890, while third-party fees reached an average of $957 for a total closing cost average of $1,817.

Lender Closing Costs

The biggest closing cost an Oklahoma buyer pays to the lender is an origination fee. This charge represents the charge of loan officers for providing their services. Buyers during the 1990s and 2000s, particularly those with marginal credit, often faced astronomical origination fees that reached as high as 4 or 5% of the loan amount. The ensuing mortgage meltdown helped to shed light on such exorbitant charges, and mortgage companies have since cleaned up their act. As of 2018, most origination fees in Oklahoma equal less than 1% of the loan amount.

Most lenders also charge a document preparation fee and a tax services fee, though neither fee should cost more than $100.

Non-lender Closing Costs

The specific non-lender closing costs a buyer in Oklahoma must pay, as well as the amount of the charges, depends on the size and nature of the transaction. The following charges represent the most common non-lender closing costs in Oklahoma, though not all of them apply to all real estate transactions in the state.

The settlement fee usually represents the largest non-lender closing costs in Oklahoma. This fee, which gets paid to the title insurance representative or real estate attorney handling the closing, averages at $341.

The second-largest fee, at $477 on average, is the appraisal fee, which pays for a licensed appraiser to examine the property and estimate its market value based on size, location and recent sales in the area. Most lenders require a home appraisal to ensure they do not lend more money on a home than it is actually worth.

Some buyers like to have a property survey done before closing on a house. A professional surveyor comes out and surveys the property lines, determining the exact boundaries. The average fee for this service in Oklahoma is $250.

Additional non-lender fees may also apply, such as a courier fee, a flood certification fee and a credit report fee, though these fees combined usually do not amount to more than $100.

The Bottom Line

Home ownership in Oklahoma is very affordable. This is due, in part, to lower home values and equally low closing costs. You may have to give up a few amenities if you compare living in Oklahoma to other, bigger states, but you may be satisfied that you're getting more value for your dollar with such low rates. 

Texas (TX): Average Closing Costs

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