Jumbo Doctor Loans - Get Pre-Approved

All too often we receive calls from physicians who have found the perfect home yet their financing strategy has not been vetted.  Putting the cart before the horse happens to many of us mostly because we do not understand the process.  Don't worry, Physician Relocation Specialists can still help you.


Case in point: two physicians contacted us today to help find financing after they had written offers for new homes, one for a $2,000,000 purchase in CT and the other purchasing a $700,000 home in IL.  These clients will be put in touch with a banker who can help them meet their goals - free of charge.


We have worked with many physicians (and their spouses) who become emotionally tied to a new home either they cannot find financing for or cannot afford.  In hundreds of cases, we have helped doctors find the financing solution they need.  Occasionally though, we run across clients who's expectations need to be reset - but that's the exception.


The following is the process we recommend when purchasing a new home:

Contact a REALTOR® through Physician Relocation Specialists

A relocation coordinator at Physician Relocation Specialists will introduce you to a full time, professional REALTOR® who can help you through the entire process of buying a home, starting with the mortgage and continuing right through closing – and beyond. He or she can help you shop for the best interest rate and terms and, if you wish, suggest mortgage lenders.

Get Preapproved for a Loan

The higher your FICO score, more loan programs become available to you like the doctor loan.  The REALTORS® recommended by Physician Relocation Specialists are able to help you understand the benefits of the different loan programs available. The lenders we recommend will give you the best deal.

Determine Your Price Range and Area(s) in Which You're Interested

By now you should have a good idea of how much home you can afford. This helps you narrow down your home search. You should also begin researching the neighborhoods in which you might want to live. Your recommended REALTOR® can help.

Decide Which Amenities and Features You Must Have – and Which Ones Would Be Nice but not Necessary

How many bedrooms and bathrooms do you want? Would you prefer a newer home or an older one with established landscaping? Are hardwood floors a must? Is an updated kitchen important to you? Walk-in closets? Which features would you be willing to give up if you find the otherwise-perfect home?

Begin Testing the Market

Your recommended REALTOR® will provide you with listings that meet your criteria as well as neighborhood data. Identify properties that seem to be fits for you, take an afternoon and go on a driving tour. See what's available in your price range and explore neighborhoods.

With Your Agent, Begin Seriously Looking at Homes

Your agent can add to the list of homes you've already identified – including ones that have just come on the market. Look at homes with a critical eye – does the floor plan work for you, is the property in good condition, would it be right for your lifestyle? In short, can you imagine yourself and your family living there?

Take notes at each home you visit. What do you like and not like? Narrow down your choices; re-visit homes in which you're interested. See them at different times of the day.

Make an Offer

When you've identified the home you want to buy, be prepared to help your agent prepare a written offer quickly. Your agent will be familiar with market values and will help you arrive at a price that gives your offer the best chance of being accepted.

At this stage, try not to become emotionally attached to a home. Your offer may not be accepted for any number of reasons. Have backup homes in mind. Be prepared to negotiate through your agent with the sellers.

Once Your Offer Is Accepted:

• You'll be asked to submit an earnest money deposit that usually isn't refundable.
• Begin making moving arrangements (select a mover, obtain change-of-address cards, inform friends and relatives).
• Have the property professionally inspected.
• If necessary, request repairs.
• Obtain homeowner's insurance.
• Contact utilities (phone, water, power, etc.).
• A few days before closing, stage a walk-through.
• Obtain a cashier's check for the down payment and closing costs.

At Closing:

• Make sure the terms and conditions of the loan statement are correct.
• Carefully read everything before you sign.

ENJOY YOUR NEW HOME!

Complimentary Service to Med Students, Residents and Attending Physicians

I'm always amazed when I receive a call from a physician who tells me they know all of the banks that have doctor loans and they are already working with a Realtor. Really? Then why have you reached out to us?

Doctor, we're here to save you your most important resource - time. That's why we make it our priority to provide you with prompt, knowledgable service. Read our testimonials. Physician Relocation Specialists services are free of charge to all physicians (residents, fellows, attendings).

Other services claim they have access to "exclusive physician loans". There's nothing exclusive about the loans. Elusive, maybe. But not exclusive. When any company attempts to extort you for an introduction to a lender, just give us a call at (877) 387-5734. We have the broadest network of bankers who specialize in their respective banks doctor loan program. We're happy to put you in touch with them, all free of charge.

Match Day 2011 - Physician Relocation Specialists

Match Day 2011 is less than 1 week away. Let us make your move easier.

We realize that while starting a new phase in your medical career, moving and buying a new home are all exciting endeavors, they can also be stressful. Our mission is to provide you with relocation resources that make this exciting time a little less hectic. We are a full service relocation company for physicians and our services are completely free to you. Other services claim exclusivity and charge doctors and their families a fee for services and connections we provide at no cost to you.

Physician Relocation Specialists connects graduating med students with mortgage bankers who can provide a physician home loan program with up to 100% financing and no PMI. Today, we work with nine different banks that all offer a doctor loan. Depending on where you are moving and your circumstances, you may be introduced to one or up to four of our banking partners.

We will also connect you with a pre-screened, active, and highly qualified (educated, experienced and full time) Realtor®. Choosing the right Realtor in today's market is just as important as choosing the right home. Luckily, we’ve done the work for you. We can match you with the perfect Realtor for your unique situation.

Our clients all tell us their goal after Match Day is to get comfortable and situated as quickly and easily as possible. We can help you do just that. By starting your home search early, we can help you get settled in your new home up to 60 days prior to starting your residency.

We look forward to meeting you and your colleagues at this exciting time in your personal and professional lives. We welcome referrals.

Bank of America Launches its New Doctor Loan Program

The Bank of America Doctor Loan is the most widely referenced and recognized loan program of its kind. When Bank of America canceled their program in March of 2009, many physicians were challenged to find alternate home loan solutions that would provide them with perks like no money down and no PMI.

We are pleased to announce that Bank of America has launched their Doctor Loan Program in all 50 states as of August 9, 2010. Below are the features of the Bank of America physician loan:

Who is eligible?
- Medical residents
- Existing or new licensed Medical Doctors (MD)
- Doctors of Dental Science (DDS)
- Doctors of Dental Medicine (DMD)
- Dental Surgeons specializing in oral and maillofacial surgery (DMD)
- Doctors of Optometry (OD)
- Doctors of Opthalmology (MD)
- Doctors of Podiatric Medicine (DPM)
- Doctors of Osteopathy (DO)

How much can I borrow, and how much do I have to put down?
- Loan amounts up to $850,000
- 95% LTV (5% down required)

While most physicians will be able to secure 95% financing through Bank of America, certain housing situations will require more money down. Factors like housing type, geography and declining markets may cause down payment amounts to go up. For example, physicians looking to buy an attached home (condos, townhomes, PUDs) in Florida will be required to put 20% down due to the state’s challenged real estate market.

What kind of loan products are available?
- 30YR Fixed
- 15YR Fixed
- 7/1 LIBOR ARM
- 10/1 LIBOR ARM

What are the reserve requirements?
Reserve requirements for loan amounts less than or equal to $625,500 require four (4) months principal, interest, taxes insurance and assessments (PITIA); loan amounts greater than $625,500 require six (6) months PITIA

Some other important things to note:
- Deferred student loans don’t apply to debt-to-income ratio
- You can use future income, as long as your employment start date is within 60 days of closing.
- Using future employment to qualify also requires additional reserves.
- The minimum 5% down required must be from your own funds. You can use gifts, however, for closing costs and reserves.
- The minimum credit score for all applicants is 720. If you and your spouse both apply, you both need a mid-FICO of 720.

Depending on your unique situation, certain restrictions to the above guidelines may apply. If you are interested in a physician loan, contact Physician Relocation Specialists. We can put you in touch with a mortgage banker who specializes in the physician loan at Bank of America.

Your Credit Score and the Physician Home Loan

Whether you are interested in a physician home loan, an FHA loan or a conventional mortgage, determining your credit worthiness (called a FICO Score), is a necessary first step. If you wish to qualify for a physician loan, it’s important to understand what a FICO score is and how it’s calculated.

There is often much confusion about how these scores are calculated. The data used in your credit report to calculate the score can be grouped into five different categories.

Category #1 Payment History (35% of your score)
It’s the number-one rule to having great credit: pay your bills on time. Payment history makes up 35% of your credit report, and breaks down into a few sub-categories:

• Account payment information on certain accounts such as credit cards, retail accounts, installment loans, medical school loans, mortgage, etc.
• Adverse public records such as bankruptcy, judgments, liens, wage attachments, collection items, and/or delinquency
• Length of the delinquencies
• Amount past due on delinquent accounts or collection items
• Recency of past due items, adverse public records, or collection items
• Number of past due items
• Number of accounts paid as agreed

Category #2 Amounts Owed (30% of your score)

Your existing debt also plays a large part in your credit report. However, with the physician loan, doctors are able to have all deferred student loans waived from their debt to income ratio. Other types of debts (mortgages, credits card debt, etc.) are still included in your amounts owed.

• Amount owing on accounts
• Amount owing on specific types of accounts
• Lack of a specific type of balance, in some cases
• Number of accounts with balances
• Proportion of credit lines used (proportion of balances to total credit limits on certain types of revolving accounts)
• Proportion of installment loan amounts still owing (proportion of balance to original loan amount on certain types of installment loans)
Category #3 Length of Credit History (15% of your score)

This is pretty straightforward: how long has your credit been established?

• Time since accounts/loans opened
• Time since accounts/loans opened, by specific type of account
• Time since account activity

Category #4 New Credit (10% of your score)

Constantly opening new accounts can be damaging to your credit score. Managing your existing debt and avoiding opening new accounts can positively impact your credit score. The areas examined in this category are:

• Number of recently opened accounts, loans, and proportion of accounts that are recently opened, by type of account
• Number of recent credit inquiries
• Time since recent account opening(s), by type of account
• Time since credit inquiry(s)
• Re-establishment of positive credit history following past payment problems
Category #5 Types of Credit Used (10% of your score)
This category takes a look at what kind of accounts you’ve got. A mixture of accounts usually generates better scores than reports with only numerous revolving accounts (credit cards).
• Number of various types of accounts (credit cards, retail accounts, medical school loans, mortgages, etc.

A few other things to note:

• A FICO score takes into consideration all these categories of information, not just one or two.
• Many banks offering the physician loan require a minimum FICO of 680. While there are some exceptions, it is extremely important to be aware of your credit score and manage it accordingly.
• The importance of any factor depends on the overall information in your credit report.
• Your FICO score only looks at information in your credit report. However, lenders look at many things when making a credit decision including your income, how long you have worked at your present job and the kind of credit you are requesting.
• Your score considers both positive and negative information in your credit report.
Late payments will lower your score, but establishing or re-establishing a good track record of making payments on time will raise your FICO credit score.
• Most lenders offering the doctor loan will not count student loans from medical school against the physician to determine qualifying ratios.

To learn more about how your credit score can impact your ability to secure a physician home loan, contact us.

What is a Declining Market?

So you've been told by a lender that the market you're buying in is a declining market—but what exactly is a declining market? And how will it affect your mortgage?



Declining markets - defined.

Surprisingly, there is no standard definition of a declining market. This means that while one lender may consider a city a declining market, another may not. In simple terms, an area is flagged as a declining market when the value of the housing market is reduced by conditions such as lower comparable sales and listings, short sales and foreclosures. Lenders deem these areas both risky and problematic because of their falling prices and higher rates of default.



Who decides what markets are declining?

In most cases, it is the job of the appraiser to define what constitutes a declining market. Then it is up to the lender to determine if the home's appraisal accurately reflects market conditions. The lender will then let the borrower know if the home they are looking to purchase is in a declining market.



What are the consequences of moving to a declining market?

The most immediate consequence of purchasing a home in a declining market is that you'll need an additional 5% down (on top of your existing down payment). So, if you're planning on putting 10% down, but are buying in a declining market, you will need to come with 15%.



To find out if the are you're moving to is considered a declining market—contact Physician Relo today.

Avoid Conflicts of Interest When Buying a Home

If you are looking to buy a house, beware of simply using the real estate agent who is listing the house you’re interested in. The idea that you will get a better deal by not having your own agent to represent you in the transaction is simply false.

Remember that the home owner pays the realtor fees—not the buyer. While often times the home owner’s agent may reduce their commission if the agent finds the buyer, this does not necessarily result in a lower purchase price for you. The agent listing the property has the twin fiduciary duties of loyalty and care to the home owner, not to you. Having your own representation far outweighs any perceived possibility for a reduction in purchase price.

Sure, the listing agent is technically allowed to represent both and the seller, but at what cost? The conflict of interest is unavoidable. The seller wants to achieve the highest purchase price and you want to pay the lowest possible price. How can one agent represent both interests? By using a top-notch realtor to represent you in purchasing a home, you know that you have someone working in your best interest and not the seller’s.

If you’re looking for a home, and are in need of a great Realtor, contact us. To learn more about what your should look for in an agent, visit our site.