Buying a house as a new intern

This forum made possible through the generous support of SDN members, donors, and sponsors. Thank you.

tacoman2493

Membership Revoked
Removed
10+ Year Member
15+ Year Member
Joined
Oct 29, 2007
Messages
36
Reaction score
0
Can I get approved for a home loan before July 1st despite the fact that I wont be getting paid until then? Is a letter from the residency program stating my income going to be good enough to the mortage company? Or do I have to wait until several months after my internship starts in order to get a loan?

My credit score is very good, 769. I have about 150k in student loan debt, but no other debt (credit cards, car payments, etc). Is this student loan debt going to cause me to get very high interest rates despite my good credit score?

Is there any downside to talking to 20 different loan companies and have them compete for loan offers? Do you have to pay fees just to get a loan offer? I heard somewhere that if too many companies do credit checks on you that it lowers your credit score.

Can I get a loan set up now and wait until after Match Day to use it to buy a home, or do I have to wait to get the loan until just before I buy a house?

Can I get the loan set up while I'm living in a different city?

Do you think a 150k house is too much? I'm looking at areas in which a 150k house consists of 4 bedrooms, 2500+ square feet, some of them with swimming pools. According to a mortgage calculator, that comes out to about 900 a month assuming 6.5% interest. Is this too much money that I wont get approved for?

Members don't see this ad.
 
I didn't have any income when I bought my place. They will just ask you for a letter from someone confirming that you will start work on 7/1 (or whenever). Of course when I got my loan it was while they were handing out subprime loans like candy, but my situation was similar to yours in regards to good credit score, no debt other than loans which weren't terrible.

Bear in mind when the mortgage calculators tell you 900/month that is usually not what you will pay. It doesn't include taxes which often go into your payment and the 900 is usually for interest only, etc (which will balloon). Most around here pay around $1200 for a 150k loan and that includes taxes, which are relatively high here. I didn't live in the same city either when I got the loan, although it was at the time of condo purchase. The rest of your questions I would have to defer to someone else.
 
Members don't see this ad :)
Boy I'd love to get that much house for that amount of money. I'm looking at a small, single family home (maybe 1350 sq ft) for $250K or so where I am. I started out renting because buying it's so prohibitively expensive. But I'm going to take the plunge in the next little bit.

Do keep in mind such expenses as escrow for taxes, homeowner's insurance, and condo/neighborhood fees. You should be able to afford a 150K place without a problem at all (unless you have a big car payment or something).
 
Bank of America does have a doctor loan program. Do a search on here and you can find all you will ever need to know about it. It is a great program for medical students going into internship, and for residents going to be attendings. With your credit score and amount of debt you will have no problem getting a loan for the house, just make sure the timing is geared that you will be able to cover the payments without getting too bogged down when you go into internship...
 
Can I get approved for a home loan before July 1st despite the fact that I wont be getting paid until then? Is a letter from the residency program stating my income going to be good enough to the mortage company? Or do I have to wait until several months after my internship starts in order to get a loan?
Some companies will accept the contract but you wouldn't be able to close until 30-90 days before the start of your contract (depending on your loan company). These are usually the physician loans. Those who go conventional can sometimes get exceptions but usually they will require a copy of 1-2 paystubs.

My credit score is very good, 769. I have about 150k in student loan debt, but no other debt (credit cards, car payments, etc). Is this student loan debt going to cause me to get very high interest rates despite my good credit score?
interest rate is dependent on the risk of the loan which will encompass your credit score, downpayment amount (Loan to Value or LTV), your income and your income to debt ratios. So say you have income of $3000 a month and debt of $1000 a month so your ratio is .3. Most companies will feel comfortable going up to .5 if the rest of the loan is solid. Your ratio will include your student loans, mortgage and taxes and interest. If you are deferring your student loans you will need to get proof before you are allowed to close. If you are putting 5% of the house value as downpayment you have an LTV of 95%. The lower your LTV the better chances you have of a lender working with you.

Is there any downside to talking to 20 different loan companies and have them compete for loan offers? Do you have to pay fees just to get a loan offer? I heard somewhere that if too many companies do credit checks on you that it lowers your credit score.
Yes there isa downside, but do it all within the same period and it won't hurt you as much. DO YOUR RESEARCH before you give them any information some companies will tell you they have a standard rate, some will base it off the loan

Can I get a loan set up now and wait until after Match Day to use it to buy a home, or do I have to wait to get the loan until just before I buy a house?
Yes but its a waste of your time b/c you can't lock the rate without paying a fee for that long. A good lender would give you a free lock for 30-90 days. I wouldn't suggest 180 day lock in this market b/c rates keep going down.

Can I get the loan set up while I'm living in a different city?
Yes this is quite common. Your lender just needs to be able to work in the state you are moving to, many bigger lenders are set up in multiple states.

Do you think a 150k house is too much? I'm looking at areas in which a 150k house consists of 4 bedrooms, 2500+ square feet, some of them with swimming pools. According to a mortgage calculator, that comes out to about 900 a month assuming 6.5% interest. Is this too much money that I wont get approved for?
I don't think its too much on one salary but things will be tight. We bought about the same, but have payment of taxes and insurance (also called PITI in the lending world - principle and interest including taxes and insurance) of about $1200/mn. So if you are only getting say $3500/mn (say about $41,000 per year) and that's before taxes, after taxes, health insurance you get say $2500/mn, you're spending half your spending money on your house, not including maintenance, upkeep ... as well as electricity, heat, water, sewer, cable, internet, etc. Not trying to scare you just being realistic, these things add up. Now you will get some of those taxes back but unless you have an accountant helping you out, most people just claim 1 on the W-4 if single and be done with it getting money back in April from their taxes.

If you plan on stayign there for at least 5-7 years I'd suggest purchasing if renting costs about the same and in th right market. Watch the areas of where to buy and where values might go up. Also if you buy a house that needs to fix up, your more likely to have your value go up than a house that's already updated (like new kitchen, new bathroom, finished basement, new windows, etc).

Hoped this helps a bit. And yes BOA has a physician loan program you'd fit well in but I also know a few people that got screwed by them (with good credit) b/c the lenders have a high volume and can't attend to problems that pop up in the loan. I know 2 people last year who's sales fell through at the last minute last year with two different lenders at BOA b/c the lender overlooked and didn't disclose everything to the borrower until last minute and it was too late. There are other programs to consider where you will get better customer service and better rates. Also you can check out local banks that might be willing to work with you. If you are looking at real estate, as your agent for suggestions. And I wouldn't go with a 30 yr fixed unless you plan on staying there for the long term. I'd go for an arm b/c you'd probably move up in housing once you becoming an attending.
 
Can I get approved for a home loan before July 1st despite the fact that I wont be getting paid until then? Is a letter from the residency program stating my income going to be good enough to the mortage company? Or do I have to wait until several months after my internship starts in order to get a loan?

My credit score is very good, 769. I have about 150k in student loan debt, but no other debt (credit cards, car payments, etc). Is this student loan debt going to cause me to get very high interest rates despite my good credit score?

Is there any downside to talking to 20 different loan companies and have them compete for loan offers? Do you have to pay fees just to get a loan offer? I heard somewhere that if too many companies do credit checks on you that it lowers your credit score.

Can I get a loan set up now and wait until after Match Day to use it to buy a home, or do I have to wait to get the loan until just before I buy a house?

Can I get the loan set up while I'm living in a different city?

Do you think a 150k house is too much? I'm looking at areas in which a 150k house consists of 4 bedrooms, 2500+ square feet, some of them with swimming pools. According to a mortgage calculator, that comes out to about 900 a month assuming 6.5% interest. Is this too much money that I wont get approved for?


As someone already pointed out, 900 a month PLUS taxes/insruance on top of that. Total payment would probably be around 1100 per month. A 2500 sq ft house has an electric bill on good days at 200 bucks, say 30 a month for water/trash.... internet is practically an necesitiy so thats about 30....Your looking at near $1400 a month, just to have a roof over the head.... not including eats, gas, upkeep, lawn mowers, pool supplies, etc etc... and with residency pay, you will be left with 600-700 per month for all that.

Unless you have a g/f / soon to be spouse with a second job, or in a position where moonlighting is big after 1 year....I would seriously consider backing off the price home you are looking at.... espically when it sounds like you could get a rather modest home (3 bed, 2 bath, brick, etc....1500 sq ft) for right at 100K..much more affordable.

If you have a sugar momma, or forsee making 6 figures moonlighting soon, OR have some other type of side income job that you believe you can keep up during residency....then go for it.
 
I'm a 4th year student who already owns a home and am wondering about the logistics of buying a new home in a new city when I start residency. With the way the market is right now, it could take several months to sell my house, so I may not sell it before residency starts. Will it be impossible to qualify for a new mortgage if I don't sell my house first and if I have $130000 in deferred student loans? Do the doctor's loans ignore all your debt when considering whether to approve you, or is there another way to go about getting a new mortgage with an existing mortgage? Thanks!
 
Top