Im graduating residency in June, and looking to move to a new city.
Spoke with this mortgage co and they said in order to get a loan I have to produce 1st month's pay stub with my new job. Well obviously I'm not gonna have one UNTIL I move there.
How is any new physician suppose to get a loan to buy a house in a new city? Anyone have this problem before?
This is of course not a "physician loan" mortgage co, do I have to resort to using them?[/QUote/ documentation requirement for mortgages, you could probably get around this by supplying an old "residency paycheck" stub together with a letter showing your new appointment and its terms. Or supply this requirement at the last minute before the loan is approved. You could pay the difference to the buyer in rent and get the home a little later as owner. The terms of your loan are determined by its future. For it to be "conforming," this means it will fit into a package of loans which will be sold as a large investment to an institutions such as a university endowment 0r a pension or and they must all be homogenous--terms, documentation, loan to value ratios, etc, so that when the institution buys the package of loans they can expect to get all loans which conform to certain standards. (This is what turned out to be the big lie in the subprime crisis, because there was so much cheating allowed in the documentation, so things have again become strict in terms of documentation. Many times irrationally strict. In a non conforming loan, your loan may not be sold at all, but retained by the bank who made you the loan, in which case they have more control over what is acceptable on a local level, as opposed to meeting some outside standards, which often, frankly, make little sense. There are a lot of ways to play in the mortgage sandbox. There was a mortgage, often used in Australia, and brought to the US right before the market fell to pieces, which was a great new product for the right buyer. It was bascially a HELOC (home equity line of credit) that was also a 30 year mortgage, marketed by a few lenders. It disappeared but may be back and is worth looking for. If you pay down a normal mortage by making extra principal payments, you can never get them back. With this mortgage, technically you could. It is a great system for the disciplined money manager, which many of you should be. It was marketed like "the last mortgage you will ever need" or a home equity conventional mortgage, can't quite remember the brand names. There is also software marketed to do this, but its not the same AT ALL. Always check bankrate.com for great mortgage rates ranked by area, and expect that service will vary a lot. If you know what you are doing you can get a great rate. If you are doing this for the first time, there are ways to get to 20% down payment that are creative if what you really need is 100%. Best advice ever: do NOT fall in love with a house. There are lots of them out there you haven't seen and are not on the market this minute but might be next minute, so you may do better than you think. This is one of the greatest buyers markets ever, so be smart and you should come out fine...also remember to buy low, that's the first half of the formula. On the other hand, losing money on a house isn't the wortst financial mistake you will make over time and at least you get to live in it! Best of luck. Oh, spend a month in a nice extended stay hotel with a pool and free breakfact and make the seller nervous--that works well too. The realtor will work to help this go through too.
