At Ficzner Group, we want to be prepared to ensure that you are given the best buying experience with knowledge and expertise to guide you along the way. We are here to guide you on purchasing a brand new home in Ohio.
Today I would like to talk to you about Can Physicians Buy a House Before Starting an Attending Job Using Just an Employment Contract?
Some physicians may be able to qualify for a mortgage before starting an attending job by using a signed employment contract as evidence of future income. Physician mortgage programs may be more flexible about employment history and future income than conventional mortgages, but requirements vary by lender, contract terms, specialty, start date, credit, debt, and other financial factors.
Can Physicians Get a Mortgage Before Their Attending Job Starts?
Yes, some lenders allow qualifying physicians to apply for a mortgage before receiving their first attending paycheck. Instead of relying entirely on current employment income, the lender may accept a signed employment contract showing the physician’s future position, salary, and start date.
This can be especially relevant for physicians finishing residency or fellowship who are relocating for their first attending position.
Rather than waiting several months to establish a new employment history, a physician may be able to begin the home-buying process before the new job starts, depending on the lender’s underwriting requirements.
How Does an Employment Contract Help Physicians Qualify?
An employment contract can document important information about a physician’s upcoming employment, including:
- Employer
- Position or specialty
- Base compensation
- Start date
- Employment conditions
- Guaranteed compensation, when applicable
A lender can use this information to evaluate whether the physician is expected to have sufficient future income to support the mortgage.
However, having a contract does not automatically guarantee mortgage approval. The lender still needs to evaluate the complete application.
Do All Mortgage Lenders Accept Employment Contracts?
No. Lenders have different underwriting policies.
Some physician mortgage programs are specifically designed to accommodate physicians who are transitioning from residency or fellowship into attending practice. Other lenders may require additional documentation or may want the physician to begin employment before qualifying income can be fully used.
Physicians should ask the lender exactly how it treats a future employment contract before relying on it for mortgage qualification.
What Information Should Be in the Physician’s Employment Contract?
The contract should clearly document the information the lender needs to verify future employment.
Depending on the lender, relevant details may include:
- Physician’s name
- Employer’s name
- Position
- Salary or guaranteed compensation
- Employment start date
- Contract duration
- Employment status
- Conditions that must be satisfied before employment begins
A lender may also request additional documentation, such as proof that required licensing or credentialing conditions have been satisfied.
Can Residents and Fellows Use an Employment Contract to Buy a Home?
Potentially, yes. This is one situation in which physician mortgage programs may be particularly relevant.
A resident or fellow may have a relatively modest current salary but a signed contract for a substantially higher attending salary. Some lenders can consider the future employment income when evaluating the mortgage application.
For example, a fellow moving to another state for an attending position may want to purchase a home before relocating. Whether the contract can be used depends on the lender’s program and underwriting rules.
How Does This Compare With a Conventional Mortgage?
Conventional mortgage underwriting generally relies on established income and employment documentation, although conventional loans can have provisions for future employment income in certain circumstances.
Physician mortgage programs may offer additional flexibility for eligible medical professionals, particularly those transitioning from training into attending employment.
The important distinction is not simply whether a loan is called a physician mortgage or conventional mortgage. Physicians should compare the specific underwriting requirements and financial terms offered by each lender.
Does the Start Date of the Attending Job Matter?
Yes. The timing of the employment start date can affect how a lender evaluates the application.
A physician with a contract starting shortly after closing may have different documentation requirements from someone whose employment begins several months later.
The lender may also have rules regarding how close the mortgage closing can occur to the employment start date and whether conditions in the contract must be satisfied before closing.
What Other Financial Factors Will the Lender Consider?
An employment contract is only one part of the mortgage application.
The lender may also review:
- Credit history and credit score
- Existing debt
- Student loans
- Cash reserves
- Down payment
- Assets
- Monthly obligations
- Property value
- Loan amount
- Employment contract terms
For physicians with significant medical-school debt, the way student-loan payments are calculated can also affect mortgage qualification.
For more information, physicians can also explore Can Physicians Qualify for a Physician Loan With High Monthly Debt?
Can Physicians Buy a Home Before Their First Attending Paycheck?
In some circumstances, yes. A physician does not necessarily have to receive the first attending paycheck before applying for a mortgage.
If the lender’s guidelines permit future employment income to be used and the physician meets all other requirements, a signed employment contract may provide the documentation needed to establish expected income.
However, the physician should not assume that every lender will handle the situation the same way.
What Should Physicians Do Before Applying?
Physicians preparing to buy a home before starting an attending job can take several steps:
- Obtain a fully executed employment contract.
- Confirm the start date and compensation terms.
- Ask lenders whether they accept future attending income.
- Provide documentation about current debts and assets.
- Review student-loan treatment under the proposed mortgage.
- Determine how much cash will remain after closing.
- Compare the complete loan terms, not just the down payment requirement.
Getting prequalified or preapproved early can help identify documentation requirements before making an offer on a home.
Is Buying Before Starting an Attending Job Right for Every Physician?
Not necessarily. A physician should consider both the mortgage qualification and the broader homeownership decision.
Someone relocating for a long-term attending position may approach the decision differently from a physician who is uncertain about the location or expects another move soon.
The timing of the purchase, expected length of stay, cash reserves, monthly housing costs, and career plans can all affect whether purchasing before the job begins fits the physician’s circumstances.
Source.. KCM Mike Ficzner Blog
The Ficzner Group is a technology-driven local real estate company that serves the Lake, Geauga & Cuyahoga County areas. Our sales team of Zillow Premier Agents use advanced search technologies that make searching the web seamless and marketing your home instant within the Zillow & Trulia Marketplace.
To connect with us directly,
Please call Mike at 440-305-6349
Or via email: REALESTATE@FICZNER.COM
Visit us at www.ficzner.com- Call or text 440-305-6349 for more information.
