If you’re a doctor (or other health care professional), yours is one of the most valued and prestigious fields in our society.
So why do so many medical professionals have such a hard time qualifying to buy a home? There are several reasons:
- High Student Loan Debt.
98% of residents, fellows, and young attending physicians have student loan debt ranging from $150,000 to $250,000. If you’re in the middle of that range, any Conventional loan program is going to count about $4000 per month against your income (2% of the total you owe in student loan debt).
But the Home1 Team has loan programs for medical professionals with flexible guidelines that allow us to exclude your student loan debt for purposes of qualifying you for a mortgage. We will also help you make a plan for paying off your student loans, by not buying more home than you can afford.
- Not enough saved for Down Payment.
You might still be able to qualify for Conventional financing if you have saved 20% of the cost of the home you want to buy for a down payment. However, most people coming out of medical school don’t have $80,000 saved to buy a $400,000 home.
Again, the Home1 Team can help you with loans that will allow you to buy a home for 5% down, or even $0 down payment. We will also help you understand all of the financial implications – for example such loans will carry a higher interest rate. We make sure you understand all the pros and cons of your options.
- You want to be in your new home prior to starting work in your new position.
Assuming your new position is in California, you’ll be moving your family. Moving is usually a complex and stressful experience for everyone, so nobody wants to do that twice by renting a house until you can save enough to qualify for conventional financing and then moving again when you buy a home.
The Home1 Team has loan options that will allow you to move into your new home up to 90 days before your new job begins.
- Other Stresses.
As a student, you were probably living in a small apartment with relatively low income. You were studying, going to school, working incredibly long hours, trying to be a good spouse and/or, trying to finance your student loan debt and trying to pass your board exam so you could be licensed to practice. After all that, the last thing you want is to have to go through a difficult and complex process of finding a home in your new community, negotiating a purchase, qualifying for financing (see above) and moving your family into your new home – all while starting a new job. As a result, a lot of doctors may not have the time or energy to get their lender all the documentation they need to get your loan approved.
Mike & Gayle Lynch of the Home1 Team are very familiar with these stresses, having helped many doctors and medical professionals finance their home purchases
We have learned at the Home1 Team that the easiest way to reduce stress in buying a home is to go through the loan approval process as early as possible and avoid compacting it all in the last 30 days before your move. The goal is to get all your financial documents in order, all the pieces of the puzzle put together so that you are already qualified and pre-underwritten once you find a home. Then, all that is left to do is the title search and appraisal. You’re pretty much coasting to the closing table from there.
Talk to Mike or Gayle Lynch of the Home1 Team — trusted and experienced lenders who specialize in serving medical professionals: 530-244-0913
And don’t wait! The sooner you know you’re approved and what you’re qualified for, the stronger the negotiating position you’ll be in.