Buying a house?

[DPT2MD]

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Anyone out there buy a house before starting med school? If so do the banks take into account the money you will be getting in student loans to cover additional expenses? My wife works so we do have some "gross income" but I will not be making a dime other than the money from student loans. How will all of this be looked upon?

 

[elderjack21]

Anyone out there buy a house before starting med school? If so do the banks take into account the money you will be getting in student loans to cover additional expenses? My wife works so we do have some "gross income" but I will not be making a dime other than the money from student loans. How will all of this be looked upon?

If you can figure this out PM me. I am in a similar situation to you and here is what lenders have told me. Despite having 20% for a down payment, despite having almost 800 credit, if you don't have income verrification from the location you are moving to, you may have difficulty securing a loan on that end. Options are these: 1. Get a "co-borrower" 2. have your wife secure employment where your school would be and get a letter from the employer stating how much money she would make 3. apply for one of those low or no document loans (poor rates, shady companies)

Student loans cannot be used to get pre-approved for a home loan, nor can the be used as income (may have been different in the past, but now lenders do not let you use loans in this manner). Once you have a loan secured and the house purchased, they don't care where you get the money from to pay your mortgage. If you find a way to do it other than what I have stated, let me know.

 

[DPT2MD]

We already live in the area where I will be attending school so my wife does have a job here, just hoping to get approved for enough to buy the condo we are wanting. We pay about 600 in rent right now and with my student loans coming in the fall I could add about 400 to that from my loan so we could make a house payment up to about 1000/month. My wife has excellent credit and mine is good, have about 20% to put down but not sure if we will be approved for that with just the one income though.

 

[elderjack21]

We already live in the area where I will be attending school so my wife does have a job here, just hoping to get approved for enough to buy the condo we are wanting. We pay about 600 in rent right now and with my student loans coming in the fall I could add about 400 to that from my loan so we could make a house payment up to about 1000/month. My wife has excellent credit and mine is good, have about 20% to put down but not sure if we will be approved for that with just the one income though.

Well...I wouldn't mention adding student loans to your lender, you cannot use them to get a loan...but you can use them to pay a loan. As I mentioned before. If you are working now, and she is working, I would go ahead and plan on getting a loan pre-approved now before you quite your job and start school. There really is no sense in telling them that you won't be working come August, as that will only be seen as a negative thing for you.

Also...I think you would want to close prior to quiting your job as well, as at closing time I think the underwriter for the loan will want to make sure that your financial situation hasn't changed from the time that you initially applied.