HOME BUYING GUIDE
Every good New Orleans home buying guide starts with a plan.
Buying a home is likely the largest single purchase you'll ever make and Crescent City Living is here to prepare you for the process and help guide you through the sale.
We help you find the right place.
We help you craft the right offer.
We help you decide when is the right time to stand firm or walk away.
We help you choose the right support team: inspectors, lenders, and title companies.
Get Ready
As with most things in life, money is an issue.
Will you be paying cash for your home or do you need a mortgage?
Unless you're paying cash (real cash, not "I'm getting a settlement" or "I have some stock I could maybe sell" cash) you'll need to connect with a reputable lender.
We strongly recommend a local lender who is familiar with Louisiana law and customs. Ask us for help if you don't already know someone.
What will your lender need from you?
• 2 years of tax returns
• Most recent bank statements
• Most recent pay stubs
• Valid ID
• A list of your current debts (student loans, credit cards, etc.)
There's an entire alphabet soup of mortgage loans, so here's a quick primer:
FHA: designed for buyers who are unable to make large down payments
FHA 203(K): allows buyers to borrow both purchase and renovation funds
VA: assists veterans or eligible family members with no money down loans
RD: rural development is 100% financing of homes in targeted communities (income restrictions apply)
Conventional: any loan not guaranteed or insured by the government
Conventional: any loan not guaranteed or insured by the government
Tell us your dreams
When it comes to finding the home of your dream, think about these questions and share your answers with your REALTOR.
My dream home....
Has ________ bedrooms and _______ bathrooms
Has a ___________ kitchen with _______________
The primary bedroom is ________________ and has ______________
The yard is ______________________
Has a big _______________________
Has a small _____________________
The neighborhood has _________________________
Choosing a New Orleans REALTOR
Of course, we're a little biased and believe that the agents at Crescent City Living are the cream of the crop.
Before you choose a REALTOR to help with your home search, there are some things to know.
Buyers can choose their own agent, so interview several to see who is a good fit for you.
We don't practice dual agency. What does that mean? It means we only represent YOU during your home purchase, not the seller. We won't try to push you into our own listings and we pledge to put your interests before our own - always.
We're a team. Part of putting your interests first is having an entire team to back up your selected agent. We don't just have your back, we've got each other's backs as well. If your agent is on vacation or out sick, we've got you covered.
Find a house
The search
We are your ambassadors to the city and neighborhoods that you are considering for your home purchase.
Your Crescent City Living agent is able to provide you with up-to-date listings and can share their in-depth market knowledge to be sure you don't ever overpay for a house.
What about For Sale by Owners?
If you see a house with a For Sale by Owner sign in the front yard, snap a pic or write down the details and send it to your agent. We're experienced in negotiating with private sellers as well as with other agents.
A word about open houses
Open houses are so much fun! Wandering through, checking out all of the nooks and crannies. Right up until the listing agent starts trying to hard-sell you.
Grab a few of your agent's business cards to keep with you. If you pop into an open house, just give a card to the listing agent and let them know someone is already helping you.
Make an Offer
Now that you've found the perfect place, it's time to put pen to paper and write an offer.
The contract
The Louisiana purchase agreement is the contract for the purchase of a residential property. We're well versed in the intricacies of writing contracts and how to protect your interest.
What we need to write your offer
• Price being offered
• Date of closing
• Type and terms of your mortgage loan (if applicable)
• Appraisal requirements
• Appraisal requirements
• Length of your inspection and due diligence period
• Amount of your deposit
ASK YOUR AGENT FOR A COPY OF THE CURRENT LOUISIANA PURCHASE AGREEMENT TO REVIEW BEFORE WRITING AN OFFER
Inspections, appraisal, and loan approval (oh my!)
Contingencies
What are contingencies? Contingencies are the list of things that must be completed before your contract become totally binding. Typical contingencies are inspections, due diligence research, loan approval, and appraisal.
Inspections and due diligence
As a buyer, you have the right to investigate the condition of the property, as well as confirm to the zoning, square footage, flood zone, insurance costs, and other pertinent details about the house.
You are free to hire anyone you like, but we're happy to help you find the right professionals to assist you.
Loan Approval
Our team helps you stay on track with your loan approval so there are no issues when it comes to closing time.
Appraisal
Your mortgage company will require an approved appraiser to inspect the property and determine the current value based on recent comparable sales in the area. Don't forget that you have a right to a copy of your appraisal, since you're the one paying for it.
Additional Buying Costs
The cost of buying a New Orleans home isn't limited to your down payment. There are additional expenses to be prepared for. Not all of these are applicable to every purchase, though. Your agent will be your guide.
• Deposit: minimum $500, up to 1% of sales price
• Title Insurance: estimate -.5 to -.75% of your purchase price
• Home inspection: $500-$750
• Termite inspection: $95-$150
• Plumbing video inspection: $250-$350
• Elevation certificate: $200-$400
• Structural engineer inspection: $$450-$650
• Roofing inspection: $150-$400
• Pool inspection: $250-$400
The Dos and Don'ts of New Orleans Home Buying
DO
• Get to know the neighborhoods - drive them during the day and the evening
• Tell your agent about any homes you want to view, even For Sale by Owners
• Get pre-approved for your mortgage
• Make a list of what is "must have" vs "nice to have" in your new home
DON'T
• Change jobs during the mortgage process
• Make any large purchases until after the closing
• Spend any of your down payment money
• Make unusual large deposits or withdrawals to your bank accounts
• Get married or divorced during the mortgage approval process
Close
What to expect
The final walkthrough
Generally the day before or day of your closing, the final walkthrough allows you one last look at the house before you sign all of the sale documents. This walkthrough is your chance to be sure that all negotiated repairs have been completed and that the house is in the same or better condition as when you made your offer.
What to Bring
There are just a couple of things you'll need to bring with you to the closing:
• Valid driver's license or state-issued ID
• If you aren't wiring your closing funds, you'll need a cashier's check for any amount due at act of sale. The title company will advise you as to the balance needed.
