Today I wanted to talk to you just a little bit about why resident physicians seem to struggle the most with mortgage financing and why I think they’re the highest at risk. There’s just a few steps that you can take to protect yourself, but first you need to know what those risks are.
The first risk that we see with mortgage underwriting for a resident physician is many times they haven’t filed tax returns for the last couple of years because they’ve gone through medical school and there’s very little income if any to report. The fact that you have very history if any earning income can create a risk factor for a lot of banks out there.
Now, the other reason is because most clients that we work with are relocating across the country, oftentimes with their families and they don’t want to start their job, get a paycheck stub and then go out and find a home. They want to move in, get settled and then start their jobs.
Now, the devil is in the details when it comes to underwriting employment contracts and no two employment contracts are the same. So, it’s very important that if you’re going to be closing based on a future income like an employment contract, that you have that reviewed not only by the loan officer, but by the mortgage underwriter and they give you their stamp of approval saying that they’re going to be able to take that source of income.
The third issue that we see residents face of course, is student loans. I can’t tell you how often we’ve received clients that have been pre-approved and the later to find out that they’re not able to qualify for financing because the loan officer has misjudged how their company looks at student loans. So, it’s important that you make sure if you have student loans, you’re dealing with a company that works heavily with positions. I always encourage clients to have those documents reviewed by an underwriter, not just a loan officer so you know for sure you’re not going to have any problems with getting financing.
If you have any additional questions, we’re here and we’d absolutely love to hear from you.