First-Time Home Buyer Guide
Everything you need to know about buying your first home in Louisiana.
Buying your first home is one of the most exciting milestones of your life — and Louisiana has some unique aspects that every buyer should understand. This guide walks you through the process from offer to keys, with a focus on what makes Louisiana different.
The Louisiana Difference
Louisiana's legal system is unlike any other state. Here's what makes buying a home here unique.
Civil Law, Not Common Law
Louisiana is the only state that follows a civil law tradition based on French and Spanish legal codes. Property law works differently here than in any other state.
Act of Sale
In Louisiana, property transfers via an "Act of Sale" rather than a deed. This must be executed before a notary and two witnesses.
Parishes, Not Counties
Louisiana is divided into 64 parishes (not counties). Property records are kept at the parish Clerk of Court, and tax millage rates vary by parish and ward.
Community Property
Louisiana is a community property state. For married couples, assets acquired during the marriage are generally owned equally by both spouses — this affects title and closing documents.
Forced Heirship
Louisiana has forced heirship laws that protect certain heirs (children under 24 or permanently disabled) from being disinherited. This can affect title to inherited property.
Successions, Not Probate
When someone passes away, Louisiana uses a "succession" process (not probate). Until a succession is completed, title may not be clear — which is why title searches are essential.
Steps to Buying Your First Home
Get Pre-Approved for a Mortgage
Before house hunting, meet with a lender to get pre-approved. This tells you how much you can afford and shows sellers you're a serious buyer.
Find a Real Estate Agent
A local agent who knows the Louisiana market can help you find the right home, negotiate the price, and navigate the unique aspects of Louisiana real estate.
Search for Homes and Make an Offer
Once you find the right home, your agent will help you prepare a purchase agreement with your offer price, contingencies, and proposed closing date.
Open Title
This is where Southern Title comes in. We'll perform a title search to verify clear ownership and identify any liens, mortgages, or other issues that need to be resolved before closing.
Home Inspection and Appraisal
Get a professional home inspection to identify any issues. Your lender will also order an appraisal to confirm the home's value supports the loan amount.
Review Your Closing Disclosure
At least three business days before closing, you'll receive a Closing Disclosure detailing all costs. Review it carefully and ask questions about anything you don't understand.
Attend the Closing
At closing, you'll sign all documents, pay your closing costs, and the Act of Sale will be executed. Southern Title handles all of this at one of our five convenient locations.
Get Your Keys
Once everything is signed and funds are disbursed, you're officially a homeowner. We'll handle recording the Act of Sale with the parish Clerk of Court.
Understanding Closing Costs
Closing costs are the fees and expenses you pay at closing, beyond the down payment. In Louisiana, buyers can typically expect to pay 2% to 5% of the purchase price in closing costs.
Common buyer closing costs include: title insurance premiums, title search fees, recording fees, attorney/notary fees, lender fees (origination, appraisal, credit report), homeowner's insurance, and property tax escrow.
Title Insurance Explained
What Is Title Insurance?
Title insurance protects you against hidden problems with the property's title — things like undisclosed liens, errors in public records, forged documents, or unknown heirs. It's a one-time premium paid at closing that protects you for as long as you own the property.
Owner's Policy
Protects you, the buyer. Optional but strongly recommended. Covers the full purchase price and protects your equity in the home.
Lender's Policy
Required by your mortgage lender. Protects the lender's interest in the property. Coverage decreases as you pay down your mortgage.
Good to know: In Louisiana, title insurance rates are regulated by the state — so the premium is the same regardless of which title company you choose. The difference is in the service and expertise.
First-Time Buyer Programs
Several programs can help make homeownership more accessible. Ask your lender about these options.
FHA Loans
As low as 3.5% down payment. Popular for first-time buyers with moderate credit scores.
USDA Loans
Zero down payment for eligible rural areas. Many areas outside New Orleans proper qualify.
VA Loans
Zero down payment for eligible veterans and active duty military. No private mortgage insurance required.
Louisiana Housing Corporation (LHC)
State-sponsored programs offering down payment assistance and competitive rates for qualifying Louisiana buyers.
Wire Fraud Warning
Wire fraud targeting real estate transactions is on the rise. Criminals intercept emails and send fraudulent wiring instructions that can divert your closing funds. This is especially dangerous for first-time buyers who may not be familiar with the process.
Always verify wiring instructions by phone before sending any funds.
Never use a phone number provided in an email. Call our office directly at 504-367-2333 to verify any wiring instructions.
Ready to Get Started?
Contact Southern Title today for a quote or to schedule your closing.