It was the phone call I received from a young incoming resident physician whom had just been declined by another bank for his home loan (the day before he was supposed to close) that motivated me to write the book Why Physician Home Loans Fail – How To Avoid The Landmines For a Flawless Home Purchase.
Unbeknownst to him, he had made all the hallmark mistakes that typically go with a last minute mortgage decline and it was about to cost him dearly. He and his family had no place to go. He was to start orientation at the University of Utah residency program the next week and begin working long hours in his residency program. It was a tough situation for him and his family, they had to find temporary housing and he nearly lost their home.
It ended well enough, we were able to negotiate a little more time with the seller, close his loan and get him into his home within a few weeks. But think of the stress, friction, and money spent in those two weeks as his family awaited to see if we could save the deal.
The reality is he could have avoided all that stress and inconvenience for his family, by taking the time to prepare correctly and research lenders before finding a Realtor and making an offer on a new home.
In this article, I will outline for you the three most common reasons why medical professionals are declined for home loans and what you can do to avoid it.
Josh Mettle, Fairway Mortgage
Medical professionals face several unique challenges when buying a home and applying for a conventional or FHA mortgage loan. Until recently, physician home loans or doctor mortgages were only available to M.D. and DMD, excluding many other medical professionals with similar needs.
Now medical professionals have options outside conventional and FHA loans to help them overcome these common challenges and in many instances borrow at lower total costs.
By Corey Blaske, Realtor | Scout Properties
Purchasing a home is one of the best ways to build your personal equity. It is also one of the biggest financial decisions you will ever make... right behind going to medical school! No matter where you are buying, here are some helpful tips to start thinking about before you purchase.
Margaret Sucré-Vail, AIF® AWMA® l Sucré-Vail Wealth Advisors l www.sucrevailwa.com
The financial conditions facing young doctors and med students today are significantly different than they were 30, 20 or even just 10 years ago. If you are starting a career in medicine, student debt and a challenging insurance reimbursement environment, among other factors, make it essential to take a proactive approach to understanding your financial and career options in order to improve your chances of achieving long-term financial success.
By HMS and Associates-Insurance & Financial Consultants
Attention Medical Professionals:
We need your help. We have our second part of this case study that we would like each of you to read and then answer the questions for yourself, honestly.
We have two medical professionals like you - on one hand the story turned out great, if you remember or read the last story about Dr. Jon, a Cardiologist from Massachusetts. On the other hand, we have this story turned, which turned out not so great.
By Ogletree Financial
Similar to other professionals that have a family that depends on them for financial security, physicians also need life insurance in order to provide for their family should they die unexpectedly. Purchasing the appropriate type of life insurance and ample life insurance coverage can ensure that the surviving family is still able to achieve their financial goals such as providing for a disabled child or extended family, sending the children to college, or retiring peacefully and comfortably, even if the primary provider passes unexpectedly.
While some doctors may feel that they are in the greatest shape of their life, we never know what the next day may bring in terms of an unexpected cancer diagnosis or tragic accident. Today we have critical and chronic illness insurance riders we can add to life insurance policies. Similar to disability insurance, a life insurance policy replaces an insured’s income if the unforeseen happens.
Unfortunately, purchasing sufficient life insurance coverage can be burdensome due to external factors beyond the insured’s control. Not only does your current financial budget need to be considered, but you will also need to predict what your financial future might possibly look like.
Buying property can be challenging, especially if you are selling your old house and purchasing your dream home simultaneously. After all, it might take a while to offload your previous home. It could leave you without enough funds to secure your new property. Luckily, a bridging loan can help you avoid the dilemma.
Bridging Loan and How It Works
A bridging loan is a short-term funding choice. As the name implies, it is used to “bridge” the gap between the sale of one property and the purchase of another.
The bank typically works out the amount of the loan by combining your new home's value with that of your existing mortgage and then subtracting the assumed sale price of your existing property. The result is your “end debt” or “ongoing balance.” It also represents your bridging loan's principal. The bank will then evaluate your capacity to pay off this end debt.
By Josh Mettle, Fairway Physician Mortgage
If you’re like many clients I speak with, your family may be ready for a home that better fits your needs. It’s possible your family size has changed, your lifestyle and recreational interests have evolved, or your just plain old sick and tired of wasting hours of your life commuting.
Unfortunately, the annoyingly low real estate inventory problem is making it hard for millions of Americans and thousands of Utahns to find the home of their dreams; one that will fit their family’s needs and afford them a better lifestyle.
Here are a few of the statements I hear from clients regularly:
By HMS and Associates-Insurance & Financial Consultants
Attention Medical Professionals: We need your help. We have a case study that we would like each of you to read and then answer the questions for yourself.
We have Dr. Jon a Cardiologist from Massachusetts who invested in a IUL (Index Universal Life Policy) strictly for growth. He invested $50,000 and paid the first month premium of $2,000 and called the agent and told him that he wanted to cancel the policy. The doctor didn’t want to tell the agent the real reason why, so here’s how the conversation went.