When to shop for mortgage?

[irishgirlmd]

Advertisement - Members don't see this ad

My husband and I are couple's matching and won't be able to really look for a house until after March 20th. When should we start shopping around for mortgages?

Also, since we are both medical students we will not have enough for 20% down on a home. Should we try to get one of the "drs loans" or should we get the residency/relocation loan to come up with 20% down?

 

[Sol Rosenberg]

I would start shopping around now. If you don't have ANY down payment, you might not be able to get a mortgage these days UNLESS it is a doctor's loan. Otherwise, you might want to look into products like 80/15/5 and 80/10/10 piggyback loans (require 5% and 10% downpayment, respectively.) Consider all your options. If the residency relocation loan has a low interest rate it might be worth it. If PMI is still decuctible this year (I honestly don't know if it is,) a traditional loan 95% loan might make sense (if they are still doing them.) Things have changed a bit with the lending scene since I bought my last house ~1 year ago, so that's the extent of the advice I am comfortable giving. Best of luck to you!

 

[doctorloans]

Definitely start shopping now... It's never too late, and if you tell lenders up front that you're not ready quite yet, they'll understand. A lot of people start shopping around 3-4 months in advance.

Remember that you should look for your mortgage just like you'd look for the house, or a new car. Shop around until you find the best customer service, the best rate, etc etc.

Regarding the 20% down, there are definitely still loans out there (doctor-only) loans that you can use to finance a home 100%. It's all just a personal choice, if you have the money and want to put money down, then by all means, do so.

PM me for more info...

 

[fsuwolf]

I would first determine where would like to live, then spend some weekends looking around the neighborhood, are there alot of houses for sale, for rent? Talk to a realtor or go to www.housevalues.com to get a range for what house are selling for. Then I would try to get prequalified, most realtors in this type of market prefer to deal with clients who are prequalified. Another route you could take is looking into FHA/Va foreclosures, they do not require 20% and if this is your first home it maybe a good way to trade up once the real estate market rebounds.
But according to most industry experts time is on your side for a buyers market. As for the direction of mortgage rates watch the ten year treasury rates typically move off this benchmark.

 

[snowbunny]

This is a fantastic FREE website on home values. Its integrated with maps so you can see how much houses on the same block sold for. There is all kinds of free info available here.

http://www.zillow.com/

 

[mshheaddoc]

This is a fantastic FREE website on home values. Its integrated with maps so you can see how much houses on the same block sold for. There is all kinds of free info available here.

http://www.zillow.com/

be weary though of the amounts on there, I used that and trulia.com in conjunction to find houses once the area was narrowed down. Great tool, just don't live by it as the values can be a little off.

 

[RockfordWF]

My husband and I are couple's matching and won't be able to really look for a house until after March 20th. When should we start shopping around for mortgages?

Also, since we are both medical students we will not have enough for 20% down on a home. Should we try to get one of the "drs loans" or should we get the residency/relocation loan to come up with 20% down?

Get the doctor loan---it has the best benefits of any loan. If you take out more loans now, your credit score will drop.

 

[UVABranch]

what's a doctor loan? Is is something you can only get once you've graduated? I'm leaving my job next week, and starting as a MS1 this summer, and I would love to put my 1000-1200 into my mortgage rather than someone else's. Is it even fieasable to get a mortgage when my only income will be federal loans??

 

[DoctorWannaBe]

what's a doctor loan? Is is something you can only get once you've graduated? I'm leaving my job next week, and starting as a MS1 this summer, and I would love to put my 1000-1200 into my mortgage rather than someone else's. Is it even fieasable to get a mortgage when my only income will be federal loans??

You have to graduate med school to get the doctor's mortgage, which lets you get 0% down and lenders don't count your student loans against you. I bought a house in med school and used my dad as a cosigner because I had no income. I know a lot of med students who owned homes, and I imagine they also had cosigners or spouses with income. Depending on what your current salary is and how long you've been at your job, it might be possible to qualify for a mortgage on your current salary unless they find out you are leaving. Federal loans are not considered income, and are actually counted against you because they are debt, so that won't help you get a mortgage. There used to be no-doc (no documentation) programs that would give you a mortgage based on having an excellent credit score and you don't have to prove your income, but I don't know if those exist anymore with the mortgage crisis.

 

[mshheaddoc]

There used to be no-doc (no documentation) programs that would give you a mortgage based on having an excellent credit score and you don't have to prove your income, but I don't know if those exist anymore with the mortgage crisis.

They don't.

If you have no income you need a cosigner. Physician loans are getting harder to qualify as well so take note. 100% financing is completely disappearing.

 

[deleted126335]

.

 

[UVABranch]

A "doctor loan" is a marketing technique designed to appeal to your vanity.

‘ppreciate your reply....but I was only looking for constructive replies, rather than speculation from a stranger about my personality. Thanks.

As for the others who posted valuable information thank you! I knew the chances were slim that I would be able to get a mortgage while in school, but I thought I would ask anyway. While I know the face of the mortgage industry has changed, I'm hopeful that programs like these will still exist when I graduate. And that the mess created by the subprime stuff will have corrected itself. My debt to income ratio will be "remarkable" when I graduate to say the least. And since another dream of mine is to own a home, I'll take the help I can get. Thanks again for the information. 🙂

 

[deleted126335]

.

 

[MirkoCrocop]

i dont anyone that chooses doctorloans over the bigger banks when they do the shopping around.

check out bank of america and compass for decent deals.