The New Orleans home market is starting to show promise when it comes to affordability. That’s good news for homeowners looking to buy a home in the city.
This article will tell you everything you need to know about buying a home in New Orleans.
Should You Buy A Home In New Orleans?
New Orleans is one of the most popular cities in America for many reasons. Not only is the cuisine second to none, but the communities and culture that make up the city is one of the most unique in the world.
If you’re considering buying a home in New Orleans, you should know that safety concerns are something every major city grapples with, some more than others. Most of all, your decision should be one based on what you want in a city and how well you’re financially prepared to be a homeowner. This article will help you with the latter.
Table of Contents:
- Get Your Credit Right
- Save Up for a Down Payment
- Get Pre-Approved
- Find Affordable Homes
Get Your Credit Right
Unless you have tens of thousands of dollars just laying around the house or in a bank, your credit score is the single most important thing you need to get a home.
A high credit score will improve your chances exponentially when it comes to borrowing enough money for a 30-year mortgage.
If your credit score is not over 500, then you’re going to need to raise it before you qualify for a home.
Read how to improve your credit score.
Save Up For A Down Payment
One of the biggest obstacles to owning a home is coming up with the down payment.
No matter what you think, the typical lender wants you to have about 20% set aside for a down payment. If you want a home that costs about $250,000, you’ll need around $50,000.
Once you get the money, the lender will look favorably upon letting you borrow the cash you need for a home.
Get Pre-Approved
The first thing you need to do is get pre-approved for a mortgage.
Once you’re pre-approved, you can shop for cheap homes that fit your budget based on the location.
Find Affordable Homes
Once you’re pre-approved, it’s time to start shopping for a home. No matter if you find a licensed real estate professional or not, you should have an idea of what home values are around the city.
Here are some sites that have homes for sale:
Can You Afford A Home In New Orleans?
New Orleans received a failing grade when it comes to the number of affordable houses, according to HousingNOLA, a coalition of organizations focused on affordability in the city.
But with that said, affording a home in New Orleans is doable, but you’ll need to make sure you’re saving enough money for a down payment.
Once the down payment is taken care of, think of the expenses you’ll need to pay for including:
- Property Taxes
- HOA Fees
- Mortgage Insurance
- Homeowners Insurance
What Are The Average Homes Values Near You?
According to Zillow, New Orleans home values average about $267,805 for the latest figures. Here are home values across the United States.
| Metropolitan Area* | November Zillow Home Value Index (ZHVI) (Raw) | November ZHVI Decline from Peak | Monthly Mortgage Cost (at 20% Down) | Monthly Mortgage Cost Change, Month over Month | Total Inventory Change, Year over Year (YoY) | Median Days on Market Change (YoY) | Zillow Observed Rent Index (ZORI) |
| United States | $357,733 | -0.5 % | $1,809 | -4.8 % | 7.0 % | 11 | $2,008 |
| New York, NY | $619,212 | -0.3 % | $3,125 | -4.8 % | -14.5 % | -6 | $3,130 |
| Los Angeles, CA | $890,637 | -7.2 % | $4,541 | -5.4 % | 9.2 % | 13 | $2,950 |
| Chicago, IL | $309,755 | -1.4 % | $1,568 | -4.8 % | -18.9 % | 5 | $1,851 |
| Dallas–Fort Worth, TX | $387,308 | -3.0 % | $1,965 | -5.0 % | 4.0 % | 6 | $1,833 |
| Philadelphia, PA | $343,687 | 0.0 % | $1,727 | -4.3 % | -10.4 % | 4 | $1,780 |
| Houston, TX | $314,507 | -0.4 % | $1,589 | -4.8 % | 12.2 % | 16 | $1,651 |
| Washington, DC | $551,159 | -0.7 % | $2,784 | -4.7 % | -11.0 % | 10 | $2,223 |
| Miami–Fort Lauderdale, FL | $482,142 | 0.0 % | $2,418 | -4.3 % | 11.4 % | 12 | $2,788 |
| Atlanta, GA | $381,824 | -0.8 % | $1,929 | -5.0 % | 14.2 % | 18 | $1,980 |
| Boston, MA | $643,642 | -2.8 % | $3,264 | -5.1 % | -1.1 % | 4 | $2,827 |
Make An Offer
Once you find an affordable home, it’s time to get a home inspection and if everything checks out, make an offer. Once the offer, the owner will have a specified time, typically up to 30 days to reject the offer or approve it.
Some issues that could delay the acceptance of an offer are the appraisals or comparable home values in the neighborhood. Sometimes, offering prices may need to be adjusted to fall in line with what other homes in the area have recently sold for.
In other cases, there may be some fixes that need to be done, before the sale proceeds.
Once the offer is accepted, you’ve got yourself a home!
Final Word
Buying a home is one of the most expensive things you can purchase, but also one of the most rewarding. Remember to take your time and do your due diligence to make sure the home meets your standards in every way.
Looking for something to do in the city? What To See And Do In New Orleans.
