12-Minute Read

Buying your first home is exciting.

It can also be intimidating.

For most people, buying a home will be one of the largest financial transactions they have ever undertaken. Suddenly, you're hearing unfamiliar terms such as pre-approval, appraisal, inspection contingency, debt-to-income ratio, closing costs, and escrow. You're trying to figure out how much house you can afford, how much money you'll need, what type of mortgage makes sense—and whether you're even ready to buy.

The good news?

You don't have to know everything before you get started.

You simply need to understand the major steps, assemble the right team, and make informed decisions as you move through the process.

This guide was originally developed from my Guide to Buying Your First Home, which covered everything from financing misconceptions to inspections, appraisals, pre-approval, home-search priorities, and closing. I've updated and consolidated that information here to better reflect the housing and mortgage environment today's buyers face.

Whether you're considering a home in Ascension Parish, Greater Baton Rouge, or elsewhere in South Louisiana, here's a good place to begin.

First Question: Are You Ready to Own a Home?

There are some wonderful advantages to homeownership.

A home can provide stability, privacy, a place to make your own, and the opportunity to build equity over time. The original guide highlighted many of those nonfinancial benefits as well: personal expression, family considerations, accomplishment, comfort, and a stronger connection to your community.

But buying isn't automatically the right decision for everyone.

Owning also means accepting responsibility for maintenance, repairs, property taxes, homeowners insurance and, where applicable, flood insurance and HOA dues. Unlike renting, when the air conditioner quits or the water heater fails, there's no landlord to call.

The Consumer Financial Protection Bureau recommends looking beyond the mortgage payment and considering whether you have reliable income, manageable debt, savings for the purchase, and enough room in your budget for the ongoing expenses of homeownership.

That's a much better question than simply asking:

"Is buying better than renting?"

The more useful question is:

"Is buying the right financial and lifestyle decision for me right now?"

Three First-Time Buyer Myths Worth Clearing Up

Several misconceptions can cause prospective buyers to eliminate themselves before they ever talk with a lender.

The original guide focused on three of the biggest. They're still worth discussing, although some of the numbers have changed considerably since that guide was published.

Myth #1: "I Have Student Loans, So I Can't Buy a House"

Student loan debt does not automatically disqualify you from getting a mortgage.

The original guide made this point because many prospective buyers assumed they had to completely eliminate student loans before they could qualify.

A mortgage lender evaluates your broader financial picture. Income, credit, assets, existing obligations, the proposed housing expense, and other underwriting factors can all matter.

The important issue isn't simply:

"Do I have student loans?"

It's:

"How does my total financial situation affect my ability to qualify for and comfortably repay a mortgage?"

Don't assume the answer before speaking with a qualified lender.

You may discover you're not ready yet—and that's useful information because you'll know what to work on.

Or you may discover you're closer than you thought.

Myth #2: "I Need 20% Down"

This may be the most persistent homebuying misconception of all.

You generally do not have to put 20% down to purchase a home.

The original brochure correctly made that point, although its down-payment statistics are now outdated.

According to the National Association of REALTORS®' 2025 Profile of Home Buyers and Sellers, the median down payment for first-time buyers was 10%, while the median for all buyers reached 19%. Those are medians—not minimum requirements.

Depending upon eligibility and loan type, considerably smaller down payments may be possible.

For example, FHA guidance provides for a 3.5% minimum down payment for qualifying borrowers with credit scores of 580 or higher.

Eligible VA borrowers may be able to purchase with no down payment, subject to VA and lender requirements.

USDA's Single Family Housing Guaranteed Loan Program also permits 100% financing for qualified borrowers purchasing eligible properties in eligible rural areas. That's particularly worth knowing in South Louisiana, where buyers may be surprised by which locations meet USDA eligibility requirements.

And Louisiana Buyers May Have Another Resource

The Louisiana Housing Corporation currently offers programs designed to help eligible Louisiana buyers with down-payment and closing costs.

Some current LHC programs provide assistance equal to a percentage of the mortgage amount, while eligibility varies by program, income, credit, property location and other requirements.

So don't start with:

"I don't have 20%, so I can't buy."

Start with:

"What financing and assistance programs might I actually qualify for?"

That's a question for a knowledgeable mortgage professional.

Myth #3: "Renting Can Be Throwing Money Away"

Renting can make perfectly good sense for someone who expects to relocate soon, doesn't yet have sufficient reserves, wants flexibility, or simply isn't financially prepared for homeownership.

Buying can provide benefits renting doesn't—including the possibility of building equity and having greater control over your living environment—but homeowners also assume costs renters generally don't.

The decision should be based on your finances, expected length of ownership, local housing costs, lifestyle and future plans—not a slogan about renting versus buying.

Before You Look at Houses, Talk to a Lender

This is one piece of advice from the original guide that I would emphasize even more today.

Get pre-approved before you seriously begin shopping.

A mortgage pre-approval gives you an indication of how much a lender may be willing to lend based on information about your income, assets, debts and credit.

It is not a final loan approval or guarantee. Freddie Mac specifically notes that factors such as the property, appraisal, loan type, income, assets and debts can still affect final approval.

But pre-approval accomplishes something extremely important:

It gives your home search a realistic financial boundary.

There's little benefit in falling in love with a $400,000 house and then discovering your comfortable purchasing range is $325,000.

And there's another possibility people sometimes overlook: you may qualify to borrow more than you actually want to spend.

Your maximum loan approval and your comfortable household budget don't necessarily have to be the same number.

https://randy.rcarealestate.com/blog/30/The+Advantages+of+Preapproval

Don't Budget for the Mortgage Payment Alone

When buyers ask, "What's my payment going to be?" they're often thinking only about principal and interest.

Your actual housing expense may include:

• Principal and interest
• Property taxes
• Homeowners insurance
• Flood insurance, when applicable or desired
• Mortgage insurance, depending upon financing
• HOA dues, where applicable
• Maintenance and repairs

The CFPB recommends looking at the total monthly payment, not merely principal and interest.

That's particularly important in South Louisiana.

Insurance costs and flood considerations can materially affect the affordability of two homes with otherwise similar prices.

A house that looks affordable based strictly on its purchase price may look very different after you've obtained actual insurance information.

How Much Cash Will You Really Need?

Your down payment isn't necessarily your only upfront expense.

There may also be closing costs, inspections, appraisal expenses, prepaid insurance, escrow deposits and other transaction expenses.

The CFPB says closing costs, excluding the down payment, typically range from approximately 2% to 5% of the purchase price, although the actual amount varies considerably.

That's why buyers should discuss cash to close, rather than simply asking about the down payment.

Depending upon the transaction and loan program, seller concessions, lender credits, assistance programs or other arrangements may help with certain expenses—but those options should be evaluated carefully rather than assumed.

Decide What You Actually Need in a Home

One of my favorite ideas from the original guide is also one of the simplest.

Divide your wish list into categories.

Must-Haves

These are features without which the home simply doesn't work.

Maybe that's a certain number of bedrooms, accessibility requirements, enough room for children, a home office, a particular geographic area, or an acceptable commute.

Nice-to-Haves

You'd really like them, but you could live without them.

Perhaps that's granite countertops, a fireplace, a large pantry, an oversized garage or a particular flooring style.

Dream Features

These are bonuses.

Pool?

Outdoor kitchen?

Huge workshop?

Extra acreage?

Fantastic—but don't allow a dream feature to distract you from a house that otherwise meets your real needs.

The original guide's checklist included examples ranging from an open floor plan and updated kitchen to outdoor space, commute time and proximity to amenities.

The principle remains excellent:

Buy for the life you actually live—not simply for the features that photograph well online.

Then the Fun Part Begins: Looking at Homes

Once financing is in place and priorities are clear, your REALTOR® can begin narrowing available properties.

This is where buyers benefit from communicating openly.

Tell your agent what you like.

More importantly, tell your agent what you don't like.

Every house you reject provides information that helps refine the search.

And remember:

Your first home doesn't necessarily have to be your forever home.

That observation from the original guide remains especially useful.

Sometimes the right first home is simply one that meets your important needs, fits your finances, is in an acceptable location, and gives you a sound starting point.

Found the Right House? Now Comes the Offer

Your REALTOR® can help you evaluate the property and structure an offer based on factors such as:

the asking price, comparable sales, property condition, market activity, financing, closing timetable, seller circumstances when known, and your own objectives.

And today's market shouldn't automatically be treated like the frantic market described in the original 2022 brochure.

Back then, inventory was extraordinarily constrained and bidding wars were widespread.

Conditions have changed.

As of August 2026, NAR reported approximately 1.62 million existing homes for sale nationally, representing about a 4.9-month supply. The national median existing-home price was $429,100, 1.6% higher than a year earlier.

Those are national numbers, however.

Real estate is local.

Conditions in Prairieville can differ from Gonzales. Ascension Parish can differ from East Baton Rouge, Livingston, Iberville or St. James. Even two neighborhoods a few miles apart can behave differently.

Your offer strategy should therefore reflect the property and local market in front of you, not national headlines.

Once You're Under Contract, Protect Your Financing

Getting an accepted offer is exciting—but don't celebrate by financing a house full of furniture.

The original guide included an excellent list of things buyers should be cautious about after applying for a mortgage.

Until closing, avoid making significant financial changes without discussing them with your lender.

That can include opening new credit accounts, financing furniture or appliances, buying a vehicle, moving large amounts of money between accounts, depositing unexplained cash, co-signing someone else's loan, closing credit accounts, or changing employment without communicating with the lender.

The safest rule is remarkably simple:

Before doing anything unusual with your income, credit, debt or bank accounts, call your loan officer.

Inspection and Appraisal Are Not the Same Thing

First-time buyers sometimes confuse these.

The Home Inspection

An inspection is primarily for you.

It helps you better understand the physical condition of the property.

Depending upon your purchase agreement, inspection findings may provide opportunities to request repairs, renegotiate certain terms, accept the property as-is, or exercise rights provided by an inspection contingency.

Along with the CFPB, I strongly recommends having the property thoroughly inspected and notes that being present at the inspection can help you understand both the property and the inspector's findings.

The Appraisal

The appraisal primarily addresses value for the lender's purposes when financing is involved.

An appraiser develops an opinion of value using the property, comparable sales and other relevant information.

An appraisal is not a substitute for a home inspection.

A house could appraise adequately and still have physical issues that matter greatly to you.

Don't Forget Insurance and Flood Considerations

Before becoming deeply committed to a property, understand the insurance picture.

That can include homeowners coverage, wind/hail considerations, flood-zone designation, available flood coverage, previous claims where applicable and obtainable, and the cost of insuring that particular house.

Two houses carrying the same $300,000 price tag don't necessarily have the same true cost of ownership.

Insurance belongs in the affordability conversation early—not as a surprise shortly before closing.

Closing: Know What You're Signing and Paying

As closing approaches, your lender and closing professionals will finalize the transaction.

For most mortgage transactions, the CFPB says the borrower should receive the Closing Disclosure at least three business days before closing. It provides important information about the loan terms and itemizes closing expenses.

Compare it with your earlier Loan Estimate.

Look carefully at:

your interest rate, monthly payment, loan amount, cash required to close, lender charges, taxes, insurance, prepaid expenses, credits and other settlement costs.

If something doesn't make sense, ask.

Don't hesitate because everyone else in the room appears ready to sign.

It's your home.

It's your mortgage.

You should understand what you're agreeing to.

The First-Time Homebuyer's Roadmap

1. Evaluate your finances and decide whether you're ready.
2. Talk with a knowledgeable lender and explore loan/assistance programs.
3. Obtain a mortgage pre-approval.
4. Choose a REALTOR® to represent your interests.
5. Establish your budget and must-have features.
6. Search for and tour homes.
7. Evaluate the property and negotiate an offer.
8. Complete inspections, financing, appraisal and insurance requirements.
9. Review your final loan and closing documents carefully.
10. Close—and get the keys to your first home.

Simple?

Conceptually, yes.

But there are a lot of important decisions inside those ten steps.

That's why having experienced people around you matters.

Your REALTOR®'s Job Is More Than Finding Houses Online

Today's buyers can find thousands of listings on their phones.

So why use a real estate professional?

Because finding a house isn't the same thing as successfully buying one.

The original guide described the agent's role as helping buyers understand contracts, stay informed about market conditions, negotiate and make sense of decisions throughout the transaction.

I'd add several more.

A buyer's agent can help you identify properties, arrange showings, evaluate comparable sales, develop an offer strategy, navigate inspections and repair negotiations, coordinate with the lender and other professionals, watch contractual deadlines, communicate with the listing side, troubleshoot problems, and help keep a complicated transaction moving toward closing.

The internet can show you houses.

Representation is about helping you buy the right one under terms you understand.

One Last Thought for First-Time Buyers

Buying your first home isn't a contest.

You don't need to buy because your friends bought.

You don't need the biggest house a lender says you can finance.

And you don't need to know every detail of the process before you begin.

Start by gathering information.

Find out what you can comfortably afford.

Learn about the financing programs available to you.

Determine what you actually need.

Then surround yourself with professionals willing to explain the process rather than simply push you through it.

A quotation from First American Chief Economist Mark Fleming:

“Buying a home is not just a financial decision. It’s also a lifestyle decision.”

That's still a pretty good way to think about it.

So, Thinking About Buying Your First Home in South Louisiana?

Questions are expected—especially the first time around.

If you're wondering where to start, what homes are available, how the buying process works, or what you should do before you begin looking at houses, I'm happy to help you understand the process and put the pieces together.

This article is intended for general educational purposes and should not be considered legal, tax, insurance, appraisal, or mortgage-lending advice. Mortgage programs, interest rates, eligibility requirements, assistance programs, insurance availability, and real estate market conditions can change. Buyers should consult the appropriate licensed professionals regarding their individual circumstances.

Source attribution

This article was adapted and substantially updated from “A Guide to Buying Your First Home,” Randy Anderson, REALTOR®/Agent, Move Realty. Current information was checked against resources from the National Association of REALTORS®, Consumer Financial Protection Bureau, U.S. Department of Housing and Urban Development/FHA, U.S. Department of Veterans Affairs, USDA Rural Development, Freddie Mac, and Louisiana Housing Corporation.

Rewritten from a article I offered a few years ago, with updating and organization provided by ChatGPT.

Randall C. (Randy) Anderson, REALTOR®/Agent 
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