Doctors need a Full Credit and Income Approval early on

Posted on Apr 8, 2016 | New Home Loans

Todd Dekuyter: It really is like you say in the book the tortoise and the hare, right, that overconfidence is what made him lose the race. And by not following up and doing the due diligence and the steps that are important it can blow up in your face right when the time comes and it might even cost them losing their home, right?Approved

Josh Mettle: Certainly. Yeah, and maybe we should just cover that real quick, Todd, I think it’s an important part; I mean, the idea of going in the transaction as early as possible. And what I recommend in the book is to get a Full Credit and Income Approval as early as possible. So, what I mean by that is as soon as you’re interested in buying a home, if it’s even, if you’re going to go out and visit the location that you’re going to be relocating to and you’re going to possibly rent or possibly buy – you may fall in love with a house and want to move.

As soon as that starts coming to mind I think you ought to start your due diligence in finding a good physician lender. Do a little research online, don’t be afraid to ask for a few testimonials and to speak with clients that they’ve done service for. And then from there, I recommend getting all your financial documents into that lender. Tax returns, employment contracts, anything having to do with student loans, downpayment, they want to see your liquidity after you put the downpayment is there any reserves left. Get all of that data into that lender and ask for the underwriter to review the documents and issue a Full Credit and Income Approval. Because at that point, you’re 90% of the way there.

Todd Dekuyter: Make sure – differentiate this from a pre-approval, I think that’s the term people are most likely going to hear. What you’re saying is a lot more than a pre-approval, correct?

Josh Mettle: That’s right. What I recommend – and a pre-approval, let’s start with that. It’s just a very cursory review of someone’s financial situation. So, in other words, Todd, you could go online, spend 5 minutes filling out an application and then I could go, “Oh that fits. Here’s your pre-approval letter. Go find a house.” Well, the problem with that –

Todd Dekuyter: Pretty simple to get.

Josh Mettle: Very simple. Yeah, the problem with that is that’s not enough to unveil anything that’s behind the curtain that’s going to be a problem. And you never want to discover those items after you’ve found a home and the Penske’s starting to get loaded with boxes.

Todd Dekuyter: Right.

Josh Mettle: You want to find that problem very early when you’re making a decision, “Should we rent or should we buy?”

So, the credit and income approval is a totally different way of doing things. We get all of those documents up front, we have an underwriter review it, and then an underwriter actually issues a Credit Approval. Now all physician lenders across the country may not use the terminology Credit and Income Approval, but all of them are going to understand, “If you’re going to do my loan, I want to get you everything early in the process, I’d like your underwriter to review it and I’d like an approval back from the underwriter before we go make an offer.”

Todd Dekuyter: And that means credit score, the whole nine yards and income documentations, yeah, that is absolutely huge!

Todd Dekuyter is the chief financial contributor and researcher for the book DOCTOR’S EYES ONLY: Exclusive Financial Strategies for Today’s Doctors and Dentists.

Todd helped bring DOCTOR’S EYES ONLY into existence and has grown it into a collection of relevant media for physicians and their spouses on money, marriage and life. This stems from his passion to see physicians and their families build stronger, life-long, relationships. Because of this he is a co-host of the podcast for DOCTOR’S EYES ONLY. The podcast now has over 15,000 subscribers.

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