Buying a house as a medical professional is a time-consuming and intensive process. Even though you are in a higher tax bracket than the average homebuyer, you are still subject to the stress that comes with finding and closing on the right house.
This stress is compounded by the low inventory of homes available for sale today. With so few homes out there, you want to be sure you will be happy with where you choose to move your family.
Here are some tips you can follow to ensure you will be happy with the home you choose to purchase:
1. Consider Your Length of Residency
Buying a home can be tricky as a resident because of your debt, income, and uncertainty about where you will be relocating to.
However, if your situation allows it, buying a house in your residency will allow you to build equity, secure low interest rates (especially right now), get a tax break, and possibly create a cash flowing asset should you ever move.
2. Budget Appropriately
Never go into a home-buying situation without a clear idea of how much you want to spend. There should always be an upper limit to how much you’ll spend.
This is why it is so important to meet with a mortgage lender BEFORE you begin the home-buying process. A mortgage advisor will analyze your financial situation and present several options that will fit within your budget.
3. Use the Right Financing
Speaking of financing, you might need to get creative. This is especially true if you have high student loan debts and/or need a larger than normal loan.
Physician mortgage loans are specialized, low-to-no down payment financing options that are available to doctors, physicians, dentists, and other medical professionals. They provide generous loan balances, relaxed debt-to-income ratios, and no private mortgage insurance (PMI). These programs are a great option for you if your financial situation is a bit complicated (which if you are a medical professional, it’s a safe bet that it is)
4. Choose a Low-Maintenance House
Even though you will have a sizable income once you finish your residency, you probably don’t have a ton of free time. The last thing you will want to be doing on your downtime is working on home improvement projects and maintenance.
To avoid this, consider purchasing a low-maintenance house with recent updates. You may even be able to find something in a neighborhood where the HOA takes care of a lot of the maintenance for you.
5. Consider Resale Value
Though it’s impossible to predict where housing values will go in the future, you do want to consider the potential resale value in the equation. If you think you’ll only be in the home for two or three years, factor in the possibility of the property sitting on the market for a few months when you eventually do turn around and sell it.
We know financing a home as a medical professional can be stressful, confusing, and hard. However, if you follow these tips you can be that much more confident that at the end of the process you will be happy with your decision.
If you would like to get pre-approved for a home loan or have questions about how the process works, fill out the form below to request a consultation with one of our mortgage advisors. There is still time to get a great deal on a home that you love!
Already started the home-buying process but having trouble getting your offer accepted? Check out our tips for beating the competition by clicking the link below.
Are You Prepared For A Bidding War? How To Get Your Home Offer Accepted As A Medical Professional