What’s the difference between appraisal and inspection?

The appraisal estimates market value for the lender; an inspection evaluates the home’s condition for you. We recommend both.

When does a refinance make sense?

Common reasons: lower rate/payment, remove MI, consolidate debt, or pull cash out. We provide breakeven math and program options.

Mortgage FAQs for Louisiana Homebuyers & Investors

Clear, straight answers from Parish Lending—your local mortgage broker. Search or browse by topic below.

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First-Time Buyers

What do I need to get pre-approved?

Typically: last 30 days of pay stubs, last 2 months of bank statements, last 2 years of W-2s/1099s, and a government ID. Self-employed? Include 2 years of personal and business tax returns. Start here and we’ll tailor the exact list to your file. Apply now.

How much house can I afford?

A quick rule: target total housing costs (PITI + MI/HOA) around your qualifying debt-to-income range. We’ll run a Louisiana-specific estimate that includes typical millage and insurance. Try our calculator, then ask us for a personalized scenario.

How much do I need for down payment and closing costs?

Many buyers put 3–5% down on Conventional or 3.5% on FHA; VA may allow $0 down for eligible borrowers; USDA may allow $0 down in eligible areas. Closing costs in LA often run ~2–4% of price. You can use gift funds, seller credits, or lender credits to help.

What credit score do I need to buy a home?

Conventional typically favors 620+; FHA is more flexible; VA and USDA consider overall profile. We regularly approve buyers with less-than-perfect credit by optimizing DTI, reserves, and compensating factors. Ask us for a step-by-step plan to improve your score before closing.

Payments & Escrow

What’s in my monthly payment, and why can it change?

Most payments include Principal & Interest, Property Taxes, Homeowner’s Insurance, and Mortgage Insurance/HOA if applicable. Your P&I is fixed on a fixed-rate loan; taxes/insurance can change annually. Louisiana homestead exemption can lower your property tax bill—ask us how it applies to your parish.

Do I have to pay mortgage insurance? Can I remove it?

Conventional loans may charge PMI with <20% down; you can request removal with sufficient equity. FHA has MIP for most loans; USDA has an annual fee; VA has a one-time funding fee and no monthly MI. We’ll model options to reduce or remove MI sooner.

Should I pay discount points to lower my rate?

Points are prepaid interest. Paying points makes sense if your break-even period (cost ÷ monthly savings) is shorter than how long you expect to keep the loan. We’ll run the math so you can choose confidently.

Do extra payments or biweekly payments help?

Paying extra principal (even small amounts) shortens your term and reduces total interest. Biweekly programs can roughly equal one extra payment per year. We’ll show your exact savings so you can pick a plan.

Louisiana-Specific

How does Louisiana’s homestead exemption affect my taxes?

Louisiana exempts a portion of your home’s value for a primary residence, reducing assessed value and annual taxes. Savings vary by parish and millage rate; many homeowners see ~$750–$1,000/yr in savings. We’ll estimate your parish impact in your quote.

What closing costs are typical in Louisiana?

Expect lender fees, title/settlement, recording, prepaids (taxes/insurance), initial escrow, and optional owner’s title. We’ll give you a transparent fee worksheet and look for credits to reduce cash to close.

Loan Programs

Who is a good fit for a Conventional loan?

Buyers with stronger credit profiles and steady income who want flexible terms and potential PMI removal. Minimum down can be as low as 3% for eligible first-time buyers. We’ll compare Conventional vs FHA side-by-side for you.

When is FHA a smart option?

FHA offers flexible credit and down-payment requirements (as low as 3.5% down for many). It includes mortgage insurance (MIP). Great for rebuilding credit or maximizing approvals.

How do VA loans work for eligible veterans and service members?

VA can allow $0 down, no monthly MI, and competitive rates for eligible borrowers. There’s typically a one-time funding fee (some exemptions apply). We’ll verify COE and lay out total costs clearly.

What should I know about USDA/Rural Development loans?

USDA may allow $0 down in eligible rural areas, with income limits and an upfront/annual guarantee fee. We’ll check the property and household eligibility quickly and show a payment estimate.

What is a DSCR loan for investors?

DSCR (Debt Service Coverage Ratio) focuses on the property’s rental income versus its payment, not your personal DTI. Great for investors building portfolios. Ask us for current DSCR guidelines and examples.

Do you have options for self-employed buyers with complex income?

Yes. Bank-statement and other non-QM options can help document income more realistically for business owners. We’ll review 12–24 months of statements and tailor terms to your goals.

Process & Timing

How long does it take to close, and what happens on closing day?

Typical purchase closings run ~20–35 days depending on program, appraisal, and title. On closing day, you’ll sign final disclosures and loan docs, wire funds or bring a cashier’s check, and get keys once the loan funds/records. We’ll keep every party updated automatically.

What if I’m not approved right now?

We’ll give you a simple, written plan: specific credit actions, target balances, reserves, income documentation, or a better-fit loan program. Many clients qualify sooner than they expect with the right steps.

When should I lock my rate?

Lock when you’re within your target payment and timeline. We’ll discuss lock periods, extension costs, and any float-down options so you’re not surprised if the market moves.

How do I start with Parish Lending?

Pick what’s easiest: Apply online, send a quick message, or book a 15-min consult. We’ll take it from there and keep you updated at every milestone.

Ready to see your best mortgage options?

Five minutes with Erica gets you clarity on payment, cash-to-close, and the smartest program for your goals—without the salesy stuff.

💬 15-min call or text updates—your choice
📍 Louisiana-specific taxes & insurance factored in
📑 Clear estimated fees worksheet + next steps

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