Advice For First-Time Home Buyers In Louisiana
Whether it be for investment, for rental or personal, there is an obvious increase in house and property buyers in the most recent years. Before running out to make an offer and a purchase that lovely house you saw in that amazing Louisiana neighborhood, there are many considerations to make and things to observe.
For example, one of the most common mistakes made by first-time home buyers is the failure to take rates into consideration. Choosing the best Realtor with low commission, who is knowledgeable with the processes, the market and understands best practices to ensure the highest level of content for clients.
For first-time buyers in Louisiana, the Louisiana Real Estate Commission (LREC) offers many assistance programs for a seamless process.
One of the most crucial aspects of your process when ready to buy a home is choosing the right Realtor, a Realtor that can present the best options to fit in your life. It is important to choose an agent that is looking to match you with a home or property that best fits you and not one just looking to make a sale.
To do this effectively, searching should include figuring out the necessary credentials for a Realtor, conduct interviews for potentials, browse current listings and review agent or agency’s online presence before making a decision or entering a contract.
If purchasing in the state of Louisiana, salespersons must obtain a high school diploma or GED, be at least 18 years old, complete 90 hours of education, comply with LREC application procedures & background check, pass a licensing exam and be sponsored by a broker. Even with homeowners looking to sell a home, these requirements are necessary for all Realtors, above being a good fit for your needs.
Whether looking to buy a home or even sell a home, the real estate agent must have knowledge or expertise on the market, processes, and mistakes. Most Realtors will agree that a common first-time buyer mistake is the miscalculation of interest rates and not having enough as down payment.
It is typically recommended to invest at least 20% of the value of the home you’re looking to purchase as down payment. There are loan programs that offer the opportunity to purchase with between 0 – 3.5% as down payment, but many who took this option have since expressed regret.
Most first-time buyers or buyers under the age of 35 agreed that waiting to accumulate a bigger down payment would have been ideal. Discussing the best approach and practices in regards to down payments and overall rates with your Realtor and loan company is paramount.
Another common mistake first-time buyers make while purchasing a home is not considering USDA and FHA loan programs. Buying a home can seem like a scary and lengthy process, but purchasing in a city like New Orleans could potential mean landing in a neighborhood close to rivers and lakes with never ending possibilities of activities and history.
In a state like Louisiana, a program like the Federal Housing Administration (FHA) loan program gives those with low credit scores the opportunity to purchase with only 3.5% down and a credit score of 580 or higher. The USDA loan program is a buyers assist program that offers mortgage guarantees to lenders looking to fully finance in rural areas.
If looking to purchase in New Orleans, there are Louisiana Housing Corporation (LHC) first-time home buyers programs such as LHC Choice Conventional program, Market Rate GNMA program, Mortgage Revenue Bond Assisted program, Mortgage Credit Certificate program, Delta 100 program, LHC Home/MRB program and more. There are many options that offer assistance to first-time buyers to ensure an efficient process.
There are countless situations that shock first-time home buyers, but there are also certain steps that can be taken to reduce the effects of the shock. As the thought of owning a home or investing in real estate for the future is very exciting, it is important to take a step back and consider the necessary procedures that will ensure a seamless outcome.
Efforts such as taking time to save at least 20% of the home’s worth, considering and applying for loan programs, finding the perfect Realtor that is knowledgeable and will help with each process; buying, selling, support, or information.
As a first-time buyer, it’s time to make sure a Realtor is fully certified, and realizing that the process is not a race and landing on the perfect fit might take time and hard work. The market is constantly evolving, which makes now the best time to start saving or even browsing potential homes for the future.