Making an Offer on a Home
🏡 Making an Offer on a Home in Louisiana: A Step-by-Step Guide
Navigating the homebuying process in Louisiana requires understanding both national guidelines and local to Louisiana nuances. Whether you're a first-time buyer or looking to relocate, making a compelling offer is crucial. Here's how to approach it:
✅ 1. Get Pre-Approved First
Before house hunting, obtain a mortgage pre-approval. This not only clarifies your budget but also demonstrates to sellers that you're a serious buyer. Lenders will assess your credit, income, and assets to determine your borrowing capacity. Programs like FHA, VA, and USDA have specific requirements:
Fannie Mae & Freddie Mac require documentation of income, assets, credit, and employment to issue a pre-approval.
FHA loans (HUD.gov) require a minimum 3.5% down payment with a credit score of 580+.
VA loans (benefits.va.gov) require a Certificate of Eligibility (COE) and offer $0 down with no mortgage insurance.
USDA loans (rd.usda.gov) provide $0 down options for homes in eligible rural areas and have income limits.
📎 Tip: Include your pre-approval letter with your offer. It adds weight to your bid and can help you stand out in a competitive market.
✅ 2. Determine a Smart Offer Price
Once you’re pre-approved, it’s time to talk numbers.
Research similar home sales in the neighborhood (your agent will help you pull comps).
Consider the condition of the home, how long it’s been on the market, and the seller’s motivation.
📍 In Louisiana, markets can shift block by block—especially in cities like Baton Rouge or New Orleans—so pricing it right matters.
✅ 3. Decide on Earnest Money
Earnest money is a good-faith deposit—typically 1%–2% of the home price in Louisiana—and is applied to your closing costs or down payment. Work with your real estate agent to determine the right amount.
🛑 Make sure it’s refundable if your contingencies (inspection, appraisal, financing) aren't met.
✅ 4. Include Contingencies (Protect Yourself)
Fannie Mae, HUD, and USDA all recognize the importance of contingencies in protecting buyers. Common ones include:
Inspection Contingency: Gives you the right to renegotiate or walk away if the home inspection reveals major issues.
Appraisal Contingency: Required for FHA, VA, USDA, and conforming loans—ensures the home is worth what you’re borrowing.
Financing Contingency: Protects you if something changes with your loan before closing.
Clear Title Contingency: Ensures the property has no legal ownership issues.
📎 FHA, VA, and USDA loans have specific rules on allowable repairs and property conditions, so the inspection matters even more with these programs.
✅ 5. Write a Strong, Clean Offer
Work with your real estate agent to draft an offer that includes:
Purchase price
Earnest money amount
Contingencies
Closing date (typically 30–45 days)
Any personal property to include (like appliances)
Your pre-approval letter
If you’re using VA or USDA financing, let the seller know that these loans often have zero-down requirements, but still require the home to meet certain condition standards.
✅ 6. Be Ready to Negotiate
Once you submit your offer:
The seller may accept, reject, or counter it.
You might negotiate on price, closing date, repairs, or concessions.
Use your agent’s guidance—and your financing timeline—to navigate these discussions smartly. VA loans, for example, may require the seller to pay certain fees, which could be part of the negotiation.
🔚 Final Thoughts: Offers That Win
A great offer isn’t just about price—it’s about preparation, presentation, and protection. By understanding your loan program’s requirements and Louisiana’s real estate norms, you can submit an offer that gets attention without overpaying or taking on unnecessary risk.
Next Steps: Ready to make an offer? Get pre-approved with Parish Lending to boost your buying power.