Mortgage Loan approval hell

[LuckyInOC]

[quote=sdrealtor]Lucky
By 40 he has paid most of it. I was referring to someone like him being able to buy a home when he was in his early 30’s and just beginning his big earning years. Back then he had big student loans (close to $500K). He has also had to buy into a partnership the last 5 years as well as contribute toward the construction of a new office building that houses their practice. He lives anything but extravagently rarely going on a vacation. He cant afford to take the time off because he is dedicated to getting his debt paid off asap.[/quote]

That’s part of delayed gratification. If you become a doctor and must get student loans, you will need to delay certain things in order to get the big payday in the end. How many individuals make $300-$500k 20 years after high school. By the way, what is the unemployment rate for doctors these days.

Your friend had a choice buying into a partnership and building a new office building. He couldn’t work for under another partnership for 5 years instead? They couldn’t find empty office space to start the partnership? By those choices, he impacted and delayed other personal choices he could make for his family. He simply started a business that requires capital, rather than work for someone else.

I want to start a recycling business. Is that noble enough to get a low-down, low interest loan on a $1M house?

Lucky In OC

[sdrealtor]

Nope Lucky,
When you are highly specialized there are limited opportunities. Only a couple practices exist in each region. When you join you dont have the choice of not buying into the partnership and all the costs that come with that. You are correct that very few people make that kind of money and that there is no unemployment for doctors. As long as you are licensed there is ALWAYS work for you. BTW, my friend bought a house with a low down low interest loan years ago (80/20 -100% financed). Despite a tough economy and plunging housing market he paid off the 2nd in five years which proves my point. He had the capacity for the debt due to the size and nature of his income, the character due to his credit scores and career choise he just didnt have the collateral. Everything worked out just fine. I have done plenty of short sales for people that put 20% down but lost their income. I have yet to do one or even hear of one by a young physican.

To add to FLU’s comment, it isisnt just liability. When was the last engineering or PHD emergency call you took. Physicians spend much of their time on call requiring them to take calls from sick patients and often to drop everything to rush in to treat someone or save their life. Many of them are rockstars.

BTW, you may want to look into that recycling business. One of my old girlfriends married a guy whose family is in the recycling/junk business in williamsport, pa. They make more than the doctors.

[sdrealtor]

Nope Lucky,
When you are highly specialized there are limited opportunities. Only a couple practices exist in each region. When you join you dont have the choice of not buying into the partnership and all the costs that come with that. You are correct that very few people make that kind of money and that there is no unemployment for doctors. As long as you are licensed there is ALWAYS work for you. BTW, my friend bought a house with a low down low interest loan years ago (80/20 -100% financed). Despite a tough economy and plunging housing market he paid off the 2nd in five years which proves my point. He had the capacity for the debt due to the size and nature of his income, the character due to his credit scores and career choise he just didnt have the collateral. Everything worked out just fine. I have done plenty of short sales for people that put 20% down but lost their income. I have yet to do one or even hear of one by a young physican.

To add to FLU’s comment, it isisnt just liability. When was the last engineering or PHD emergency call you took. Physicians spend much of their time on call requiring them to take calls from sick patients and often to drop everything to rush in to treat someone or save their life. Many of them are rockstars.

BTW, you may want to look into that recycling business. One of my old girlfriends married a guy whose family is in the recycling/junk business in williamsport, pa. They make more than the doctors.

[sdrealtor]

Nope Lucky,
When you are highly specialized there are limited opportunities. Only a couple practices exist in each region. When you join you dont have the choice of not buying into the partnership and all the costs that come with that. You are correct that very few people make that kind of money and that there is no unemployment for doctors. As long as you are licensed there is ALWAYS work for you. BTW, my friend bought a house with a low down low interest loan years ago (80/20 -100% financed). Despite a tough economy and plunging housing market he paid off the 2nd in five years which proves my point. He had the capacity for the debt due to the size and nature of his income, the character due to his credit scores and career choise he just didnt have the collateral. Everything worked out just fine. I have done plenty of short sales for people that put 20% down but lost their income. I have yet to do one or even hear of one by a young physican.

To add to FLU’s comment, it isisnt just liability. When was the last engineering or PHD emergency call you took. Physicians spend much of their time on call requiring them to take calls from sick patients and often to drop everything to rush in to treat someone or save their life. Many of them are rockstars.

BTW, you may want to look into that recycling business. One of my old girlfriends married a guy whose family is in the recycling/junk business in williamsport, pa. They make more than the doctors.

[sdrealtor]

Nope Lucky,
When you are highly specialized there are limited opportunities. Only a couple practices exist in each region. When you join you dont have the choice of not buying into the partnership and all the costs that come with that. You are correct that very few people make that kind of money and that there is no unemployment for doctors. As long as you are licensed there is ALWAYS work for you. BTW, my friend bought a house with a low down low interest loan years ago (80/20 -100% financed). Despite a tough economy and plunging housing market he paid off the 2nd in five years which proves my point. He had the capacity for the debt due to the size and nature of his income, the character due to his credit scores and career choise he just didnt have the collateral. Everything worked out just fine. I have done plenty of short sales for people that put 20% down but lost their income. I have yet to do one or even hear of one by a young physican.

To add to FLU’s comment, it isisnt just liability. When was the last engineering or PHD emergency call you took. Physicians spend much of their time on call requiring them to take calls from sick patients and often to drop everything to rush in to treat someone or save their life. Many of them are rockstars.

BTW, you may want to look into that recycling business. One of my old girlfriends married a guy whose family is in the recycling/junk business in williamsport, pa. They make more than the doctors.

[sdrealtor]

Nope Lucky,
When you are highly specialized there are limited opportunities. Only a couple practices exist in each region. When you join you dont have the choice of not buying into the partnership and all the costs that come with that. You are correct that very few people make that kind of money and that there is no unemployment for doctors. As long as you are licensed there is ALWAYS work for you. BTW, my friend bought a house with a low down low interest loan years ago (80/20 -100% financed). Despite a tough economy and plunging housing market he paid off the 2nd in five years which proves my point. He had the capacity for the debt due to the size and nature of his income, the character due to his credit scores and career choise he just didnt have the collateral. Everything worked out just fine. I have done plenty of short sales for people that put 20% down but lost their income. I have yet to do one or even hear of one by a young physican.

To add to FLU’s comment, it isisnt just liability. When was the last engineering or PHD emergency call you took. Physicians spend much of their time on call requiring them to take calls from sick patients and often to drop everything to rush in to treat someone or save their life. Many of them are rockstars.

BTW, you may want to look into that recycling business. One of my old girlfriends married a guy whose family is in the recycling/junk business in williamsport, pa. They make more than the doctors.

[jpinpb]

This is the second person you mention that I’m aware of that has the capacity to pay, continue to pay and are educated. And yet, it seems they overpaid and bought during a bubble. And I remember you said you would tell people not to buy during the bubble. It is unfortunate that with all that education and even your prudent counsel, that they were not smart enough to wait out the bubble. I have to agree w/Lucky and go a step further, they need not just a tax man, but a good financial consultant.

[jpinpb]

This is the second person you mention that I’m aware of that has the capacity to pay, continue to pay and are educated. And yet, it seems they overpaid and bought during a bubble. And I remember you said you would tell people not to buy during the bubble. It is unfortunate that with all that education and even your prudent counsel, that they were not smart enough to wait out the bubble. I have to agree w/Lucky and go a step further, they need not just a tax man, but a good financial consultant.

[jpinpb]

This is the second person you mention that I’m aware of that has the capacity to pay, continue to pay and are educated. And yet, it seems they overpaid and bought during a bubble. And I remember you said you would tell people not to buy during the bubble. It is unfortunate that with all that education and even your prudent counsel, that they were not smart enough to wait out the bubble. I have to agree w/Lucky and go a step further, they need not just a tax man, but a good financial consultant.

[jpinpb]

This is the second person you mention that I’m aware of that has the capacity to pay, continue to pay and are educated. And yet, it seems they overpaid and bought during a bubble. And I remember you said you would tell people not to buy during the bubble. It is unfortunate that with all that education and even your prudent counsel, that they were not smart enough to wait out the bubble. I have to agree w/Lucky and go a step further, they need not just a tax man, but a good financial consultant.

[jpinpb]

This is the second person you mention that I’m aware of that has the capacity to pay, continue to pay and are educated. And yet, it seems they overpaid and bought during a bubble. And I remember you said you would tell people not to buy during the bubble. It is unfortunate that with all that education and even your prudent counsel, that they were not smart enough to wait out the bubble. I have to agree w/Lucky and go a step further, they need not just a tax man, but a good financial consultant.

[sdrealtor]

jp
Sometimes it has nothing to do with being smart enough but rather having the money and being willing to part with it as time is worth more to them than money. I’ll go a step further. My own brother (a surgeon) who I begged not to buy a house and spent 3 hours on the computer showing him why not bought in Oahu about 3 years ago with 100% financing. Several smart friends did the same with him. But he had just gotten remarried and at the age of 50 had a newborn (he has another now). He lived a pretty screwed up life his first time around and this was his chance to live the life he wanted and he didnt have time to wait in his mind. He has paid off most of his 2nd already and fortunately the market hasnt moved much where he bought so he isnt underwater much if at all. I have to say looking at his life now and considering everything that he was right and we were wrong.

[sdrealtor]

jp
Sometimes it has nothing to do with being smart enough but rather having the money and being willing to part with it as time is worth more to them than money. I’ll go a step further. My own brother (a surgeon) who I begged not to buy a house and spent 3 hours on the computer showing him why not bought in Oahu about 3 years ago with 100% financing. Several smart friends did the same with him. But he had just gotten remarried and at the age of 50 had a newborn (he has another now). He lived a pretty screwed up life his first time around and this was his chance to live the life he wanted and he didnt have time to wait in his mind. He has paid off most of his 2nd already and fortunately the market hasnt moved much where he bought so he isnt underwater much if at all. I have to say looking at his life now and considering everything that he was right and we were wrong.

[sdrealtor]

jp
Sometimes it has nothing to do with being smart enough but rather having the money and being willing to part with it as time is worth more to them than money. I’ll go a step further. My own brother (a surgeon) who I begged not to buy a house and spent 3 hours on the computer showing him why not bought in Oahu about 3 years ago with 100% financing. Several smart friends did the same with him. But he had just gotten remarried and at the age of 50 had a newborn (he has another now). He lived a pretty screwed up life his first time around and this was his chance to live the life he wanted and he didnt have time to wait in his mind. He has paid off most of his 2nd already and fortunately the market hasnt moved much where he bought so he isnt underwater much if at all. I have to say looking at his life now and considering everything that he was right and we were wrong.

[sdrealtor]

jp
Sometimes it has nothing to do with being smart enough but rather having the money and being willing to part with it as time is worth more to them than money. I’ll go a step further. My own brother (a surgeon) who I begged not to buy a house and spent 3 hours on the computer showing him why not bought in Oahu about 3 years ago with 100% financing. Several smart friends did the same with him. But he had just gotten remarried and at the age of 50 had a newborn (he has another now). He lived a pretty screwed up life his first time around and this was his chance to live the life he wanted and he didnt have time to wait in his mind. He has paid off most of his 2nd already and fortunately the market hasnt moved much where he bought so he isnt underwater much if at all. I have to say looking at his life now and considering everything that he was right and we were wrong.

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