Acadiana Mortgage Loan Process
- The Application: The key to the loan process. Using verifiable information you provide us, we work to obtain approval of your purchase loan.
- Ordering Documentation: We order a full credit report, verification of employment verification of funds to close, mortgage or landlord ratings, and any other necessary supporting documentation. If you have a property already identified then an appraisal report is ordered and a preliminary title report is requested as well.
- Loan Estimate and Closing Disclosures: We are required to prepare for you a Loan Estimate and other disclosures within 3 days of the full application submission.
- Loan Processor and Loan Submission: After receiving the necessary supporting documents, the loan processor works to verify and reconcile the information and assure that the application is complete.
- Loan Submission: If the loan package is complete, the Loan Processor submits to the underwriter for approval. The underwriter reviews your credit payment history and credit score, job stability, income ratios, down payment, closing cost, cash reserves and property appraisal.
- Loan Approval: Once the loan is approved, we are ready to go to the closing table providing the property is ready and has met the terms of the sale contract.
- Funding: After all parties (You and the Seller) have signed the closing documents, the loan is funded and you receive your keys to your new home (unless you have agreed to a later occupancy).
- Recordation: Shortly after the loan is funded, the title company will record the applicable documents with the parish Clerk of Court. If a purchase, the title company will typically mail you a copy of the recorded deed and mortgage.
- You now own your new home. Congratulations and Thank you for your business!!!
- The property is the security for the loan. The lender will require an appraisal by a certified fee appraiser to assure that there is sufficient collateral. The underwriter will look for marketability, condition and value of the home.
- Most loan programs require that funds be or must have been in your account for 2 months. The remainder can be a gift by a relative, providing a gift letter and bank statement showing the ability to give is also provided.
- Income ratios are based on your gross monthly income (before taxes). Bonuses, overtime, part-time or self-employment income must be likely to continue and is averaged over the last two years. The Principle, Interest, Taxes, and Insurance (P.I.T.I.) (plus Mortgage Insurance if applicable) is divided by the gross monthly income to get the top ratio. Take the PITI and all debts are added together and divided by the gross monthly income get the bottom ratio. Ratios needs vary based on the Loan To Value (LTV) or how much down payment is made.
- Special programs can allow you to purchase with very little money, less than perfect credit.