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3 Signs You’re Ready To Buy a Home With a Baton Rouge Real Estate Agent

Deciding whether or not to purchase a home can be one the most difficult decisions you can make. With the current unpredictability of the U.S. housing market, it’s easy to feel a lack of control when making this decision. Broker and realtor Brandon Richoux shares how to determine your readiness to purchase a home. 

That said, it is always paramount to assess your situation with a qualified Baton Rouge real estate agent.

3 Signs That You’re Ready To Invest in a Home

“If you bought a house today, there’s ultimately three results that will happen. Rates can rise, fall, or stay the same.” Richoux states, “Ultimately, mortgage rates are unpredictable. However, we can find confidence by assessing our readiness to make this investment.” 

Richoux recommends discussing these things with your Baton Rouge real estate agent before moving forward.

1) You have great credit

You should always have a clear image of your credit score before taking out a loan. The best mortgages typically go to those with credit scores of 740 and above. However, scores in Louisiana are lower than in other states. According to Investopedia, the average credit score in Louisiana in 2022 was 689. This leaves even less competition for those with high credit scores trying to refinance their mortgages. 

2) You have cash reserves

Lenders are more likely to let you borrow if you have cash reserves saved for emergencies. Cash reserves are measured by how many months of loan payments you can cover with your savings. For example, if your savings are $8,100 and your monthly loan payment is $1,350, you have six months of reserves. 

3) You plan to stay for a while

According to a 2021 report by ClosingCorp, the average closing costs in Louisiana are equivalent to 1.63% of the home price. Though these are only one-time payments, closing costs are not cheap. To make the most of these transactional costs, you should be confident that you intend to stay in the house for some time. If not, make sure you are financially stable enough to either keep or rent it out.

Analyzing Local Markets

Lastly, Richoux stresses the importance of understanding the intricacies of local market conditions. “Understanding local markets can mean the difference between moving into your dream home now and waiting another few years.” He continues, “That’s why it’s necessary to consult with a qualified Baton Rouge real estate agent before moving forward.”

Like all major cities, Baton Rouge home prices vary drastically within local markets. For example, the medium sales price for a home in East Baton Rouge (August 2023) is approximately $264,950. Meanwhile, the medium sales price in North Baton Rouge is $120,000. This is a $100,000+ difference in parishes only miles apart. Analyzing local markets is crucial to determining your readiness to buy a home.

Talk to a Qualified Baton Rouge Real Estate Agent!

We understand that a new home purchase is among the largest financial decisions most of us will ever make. Smart Move Real Estate ensures all clients understand each step and nuance of the real estate transaction. If you want confidence buying a home in Baton Rouge, call 225-448-2850 or send us a message. We can’t wait to hear from you!

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