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.