hm..unfortunately this mortgage loan officer was working with an underwriter and since the guidelines have changed so much, perhaps they have tightened the rules and anything that doesn't fit into the cookie cutter description of their guidelines, they immediately deny. At this point, they are requesting a letter of employment verification, and this needs to be submitted for an "exception" to the corporate headquarters - how ridiculous...
That is ridiculous.
I'm thinking at this point I may just try to get a FHA loan to avoid dealing with all this "Dr. Loan" baloney. Has anyone gotten/used an FHA loan?
Just a little FYI when dealing with "dr. loan" brokers ... if they don't know what they are talking about then avoid them. There are items that are standard requests for physician mtg for 4th year students, residents, and fellows. If you get feedback that you aren't a physician, tell them to ask their manager what a fellow is, tell them you are a licensed physician who can already practice medicine but decided on optional additional training and tell him good day.
Please beware that sometimes fellows are confused with post-doc fellows that are NOT eligible for these programs usually. So I could see a bit of why people might be confused especially if they had a few people call and ended up denying them. Not everyone understands the lingo.
But the standard items you will need to have (depending on if 4th year or resident/fellow):
-employment verification letter
-student loan deferment letter (they will fight you on this currently because you can only get one year deferment at a time [which is going away soon anyway so almost a null point])
-seasoned assets for closing (bank statements showing liquidity) at least 60-90 days (some require even more)
- sidenote ... so get those assets in YOUR NAME as soon as you start looking --- a sneaky way around the "downpayment" in a sense. If your parents give you $10K say 6 months before you close, usually most banks I've dealt with require 60-90 day bank statements showing the funds in your bank account. Otherwise you need to have a gift letter --- some loan programs won't accept gifts.
-last year w-2 or tax returns, current paystubs
-if selling current property - will need offer on your current house
-I'm sure I missed something but these are the big items that will be requested
These doctor loans are the same exact loans offered to the public with a few modifications and "exceptions" as they are called in the business. These exceptions are that you might not have a "stable" employment per se of what most companies want to see for 2 years+, you might be able to get out of paying private mortgage insurance, and sometimes the ratios are a bit higher so you can get more bang for your buck (but you have to know your limits on payments!!!! Don't just expect the realtor to work in your favor - they want your commission so the higher the sales price the better!).
Also, if they charge you points, ask what the final APR is ... they will quote you an interest rate of 5% then at closing you find out that its actually 7.75% because of points rolled into the loan (if you didn't pay the points outright). Mortgages are a shady business which is why we are in trouble. People have no idea how complex the mortgage market is and its sad to see how people got sucked in to some of the loan types that should have never been available. Be an active participant in your purchase/mortgage and try to get someone finanically savy to help you or just check your numbers. ASK QUESTIONS! LOTS OF THEM!! Many of these lenders dumb things down and gloss over important items. I had a few of them do it to me when I was soliciting a mortgage 2 years ago and then I layeth-the-smacketh-down when I started grilling them and then they realized that this chick knew what she was talking about. I weeded out the fast-talkers right quick but I was AMAZED at some of the crap they spewed. The ones that were honest with me upfront were the ones I considered and explained my background in the business and things went alot easier from there because they didn't have to dumb everything down. So having someone who knows how it works can help for advice on what is a good deal or not!!!
Oh and FHA is 3.5% now is it not? I'm not sure. But it might be better to go with the FHA if the payments are cheaper (even with the PMI). Payments are the end all when it comes to qualifying for a mortgage and making the payments on time. FHA you'd have to close after you start your new job though (as a 4th yr med student I believe --- we asked about that). I don't know about moving jobs. Been so long and I really am trying to stay out of this mortgage mess because I don't want to have to move myself next year. Less jinxing on my part!
/long winded rant
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