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Buying a home?

Discussion in 'Medical Students - MD' started by atdeben, Jan 28, 2002.

  1. atdeben

    atdeben Member
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    I'm wondering if any current students are living in a home or condo as opposed to a rental option.

    I'm looking to get into a small home or condo for the next four years instead of paying rent.

    Does anyone have any experiences with getting approved for a mortgage as a medical student?

    How did this integrate into your financial aid application?

    Thanks as always...
     
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  3. edmadison

    edmadison 1K Member
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    Hi,

    I bought a house and it was a great decision. Were I live a mortgage costs less than rent so it made sense. In terms of buying, you will need an income (not loans) to buy a house. I got my parents to co-sign, so there was no problem. Even with a co-signer, however, they will have to make enough to cover their debts plus your mortgage. You will also need cash for a down payment and closing costs, this will molst likely be at least 5% of your loan amount.

    Ed
     
  4. Jalopycat

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    I just bought a house 3 weeks ago assuming that I will be starting medical school this fall. I wanted to buy it while I still had good income because next year I probably won't qualify. I too live in a region where my mortgage payment is less than rent. I also got the seller of the house to pay my closing and my down payment.

    I think it's a good idea. I mean, you'll be using loan money on rent anyway, so why not put it into something that will gain equity for you? It might make that 80K med student loan not hurt so much.

    I don't know how hard it would be to get a loan while already in med school. That's a situation I purposely avoided.
    Good luck though. I had a lot of fun looking at houses. Just don't buy a house that costs as much as what you qualify for.
     
  5. mma

    mma Senior Member
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    I am also thinking of buying a house to live in during med school--it would cut monthly payments in half! But I will be going to school far, far away from where I live now.

    Has anyone else tried to buy a house long distance?

    mma
     
  6. E'01

    E'01 1K Member
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    For those of you who are in NY, may I ask where you purchased your home (what borough)? I too was advised to purchase a home, rather then spendin around $700/month for a place. You will be making payments throughout your time in medical school - would this be loan money? Will any of you consider renting out a portion of your home for extra income? Now that you are property owners, how do you think that will affect your decisions to attend certain residency programs? Would you just consider staying close to where you are now or would you sell your house?
     
  7. docuw

    docuw Senior Member
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    I cant answer the NY Questions, but I will answer the others. I am paying for my mortgage with student loan money (hey, it is the same or less than rent). I did get qualified for my loan when I still had money/income (plus my fiance who works full time is also on the loan). I would never consider renting out part of the house - I hate having to deal with the hassles of another person/life/use of my stuff. And I will sell this place as soon as I am done with Med School, and buy another place where ever my residency is.

    My reasons for buying vs. renting:

    1.Monthly payment is less.
    2.Building up equity (I bought the place for less than the assessed and appraised values, plus payment on the principle for 4 years, plus inflation in the housing market - I hope only on the selling side <img border="0" title="" alt="[Wink]" src="wink.gif" /> ).
    3. While I wont be living here for free if I sell in 4 years (would have to sell for 30,000 more than purchase price in 4 years - not likely), I will get that equity out that I wouldnt get with rent. That will make for a nice down payment on a new place, plus moving expesnes and the like. At least this way, I am not throwing away ALL of the monthly payments.
    4. Maintenance is not an issue - it is actually one thing that I enjoy doing for stress relief. Home improvment work "floats my boat". The cost of maintenace hasnt been an issue either.

    Laterz
     
  8. Fermi

    Fermi Senior Member
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    </font><blockquote><font size="1" face="Verdana, Helvetica, sans-serif">quote:</font><hr /><font size="2" face="Verdana, Helvetica, sans-serif">Originally posted by docuw:
    <strong>I cant answer the NY Questions, but I will answer the others. I am paying for my mortgage with student loan money (hey, it is the same or less than rent). I did get qualified for my loan when I still had money/income (plus my fiance who works full time is also on the loan).</strong></font><hr /></blockquote><font size="2" face="Verdana, Helvetica, sans-serif">The problem for med students is qualifying for the loan, not making monthly payments (since you have to budget for rent anyway). They obviously won't let you put your loans down as a source of income to pay down your house note, so the only way to qualify is while you're still working (if you aren't coming straight out of college). But this only applies if you're living and working in the same city as your future med school, right? As far as I know, you have to base your income on a current job (or one that you've just been hired for) in that same city. Is this what you did, docuw?
     
  9. drewdo

    drewdo Senior Member
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    My girlfriend and I bought a home long distance. Since I wouldn't qualify for a loan, she was the sole signer on the loan. I wouldn't even qualify for a car loan. When I tried, the dealer just laughed at me. Federal school loans DO NOT qualify as viable income when applying for car/home loans!

    They based my girlfriend's approval on her new job (that she hadn't started working at by the time of purchase). But since my school loan is budgeted for rent, I pay half the mortgage. In order to buy long distance, we first found a realtor we trusted. We spent one weekend looking at houses, and one weekend going through the inspection. Our house has a pool, so we especially wanted to be there for the pool inspector since we've never owned a pool before. We were lucky in scheduling both the pool and house inspector on the same Saturday. As far as closing on the house, we asked our realtor to be present for the closing, then she mailed us the keys. I don't necessarily recommend that, but it saved us another long road trip.

    Buying a house is such a good idea over renting - as we are building equity already into our first year here. As long as you can come up with the down payment, and qualify while you're still working or apply with a qualified co-signor, I highly recommend owning over renting. It helps having a none-med school partner too!! Good luck to you.
     
  10. gower

    gower 1K Member
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    Drewdo, your girlfriend is a fool for having her signature only on the loan. If and when you break up, which has a high probability, she alone is legally responsible for paying off the loan. I guess you better not tell her that unless you are a caring and considerate man and know, no matter how acrimonious the parting, that you will help her by voluntarily paying your share. If so, you are a man, although a highly unusual one at that. If you marry, then you also become responsible for paying off the loan. Did either of you talk to a lawyer before going into this arrangement?
     
  11. edmadison

    edmadison 1K Member
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    Actually, most lawyers (myself included) would say that you'd be a fool to buy a house with a "love interest" you are not married to. If she qualified for the loan, she should have enough of an income to cover the mortgage payment, utilities and taxes. If you are not married and own a home with another person, they can usually sell their half to anyone they want to -- you generally are not protected. This can (an has in many cases) resulted in some very odd arangements.

    If you are married, you are protected by other laws.

    Finally, a lawyer for purchasing a home is very inexpensive. Anyone who would buy a house without one should have their head examined.

    Ed
     
  12. CRS

    CRS Member
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    </font><blockquote><font size="1" face="Verdana, Helvetica, sans-serif">quote:</font><hr /><font size="2" face="Verdana, Helvetica, sans-serif">The problem for med students is qualifying for the loan, not making monthly payments (since you have to budget for rent anyway). They obviously won't let you put your loans down as a source of income to pay down your house note, so the only way to qualify is while you're still working (if you aren't coming straight out of college). But this only applies if you're living and working in the same city as your future med school, right? As far as I know, you have to base your income on a current job (or one that you've just been hired for) in that same city. Is this what you did, docuw?
    </font><hr /></blockquote><font size="2" face="Verdana, Helvetica, sans-serif">very informative thread. I wanted to second Ferm's question...it's mine, as well.
     
  13. drewdo

    drewdo Senior Member
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    Yes we considered all of our options legally - the "fool" and need "your head examined" comments were unnecessary. "Love interest" doesn't exactly define my S/O either. I'm not sure if you're aware of the trends nowadays, but many many couples are cohabitating without, or prior to, getting married. And don't forget all of the gay couples that do not have the advantage of being protected under marriage laws. (We, in fact, bought our house from an unmarried gay couple). I'm not sure where all y'all are at with your own maturity/emotional maturity -- but I do know where I'm at -- so I guess that's all that matters. Not everyone needs the lawyers to ensure that you'll be a good person.
     
  14. Winged Scapula

    Winged Scapula Cougariffic!
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    I'll move this to The Lounge where it is more appropriate.
     

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