Physician Mortgage Checklist: A Complete Home Buying Guide for Doctors

Most people skip this stage and go straight to browsing listings. That is a mistake. Spend two to four weeks here before you do anything else.

• Check your credit score Pull your full credit report from all three bureaus — Equifax, Experian, and TransUnion. You are looking for a score of at least 700 for a physician mortgage. Anything between 680 and 700 will limit your lender options. Below 680, pause and fix it first.
• Identify and dispute any errors Credit report errors are more common than people realize. A single incorrect late payment can drop your score by 30 to 50 points. Check every account carefully and dispute anything that looks wrong.
• Reduce your credit card balances Your credit utilization ratio has a significant impact on your score. Aim to get each card below 30% of its limit, and ideally below 10%.
• Avoid opening new lines of credit Every hard inquiry can drop your score by a few points. In the three to six months before applying, do not apply for new credit cards, car loans, or anything else that triggers a hard inquiry.
• Gather your financial documents Lenders will ask for all of this. Having it ready saves weeks.

  • Last two years of tax returns (or one year if you are a new graduate)
  • Two to three months of bank statements
  • Most recent pay stubs or residency contract
  • Employment contract if you have not yet started your attending position
  • Student loan statements showing current balance and repayment status
  • Any investment or retirement account statements

This is where a lot of first-time buyers go wrong. They focus on what the lender will approve rather than what their budget can comfortably support.

• Calculate your true monthly budget A good rule of thumb is to keep total housing costs — mortgage, property taxes, insurance, and HOA fees — below 28% of your gross monthly income. On a $250,000 salary, that is around $5,800 per month. Be honest about what you can manage, not just what looks acceptable on paper.
• Account for the costs beyond the mortgage First-time buyers consistently underestimate these:

  • Closing costs: Typically 2% to 5% of the purchase price. On a $700,000 home, that is $14,000 to $35,000 due at closing.
  • Property taxes: Vary significantly by state and city. Check the specific rate for your target area.
  • Homeowner's insurance: Budget $1,500 to $3,000 per year.
  • Maintenance and repairs: A commonly used estimate is 1% of the home's value per year.
  • Utilities and HOA fees: Can add $500 to $1,000 per month in some buildings.
• Build your emergency reserve Do not drain your savings to close on a home. Lenders offering physician mortgages typically want to see at least $50,000 in liquid reserves after closing. More importantly, you want that buffer for yourself.

• Understand your loan options As a physician, you have access to products most buyers do not.

• Decide whether a physician mortgage is right for you A physician mortgage makes the most sense when keeping your capital liquid and invested is the smarter financial move. If you already have 20% saved and a strong DTI, a conventional loan may offer a slightly better rate. For a full comparison, read Physician Mortgage vs. Conventional Loan.
• Choose between a fixed and adjustable rate Most physician homebuyers are better served by a 30-year fixed rate mortgage. It is predictable and protects you if rates rise. An adjustable-rate mortgage (ARM) can offer a lower initial rate but introduces uncertainty at exactly the stage of life when stability matters most.

Not all lenders understand physician finances. Choosing the wrong one can cost you time, money, and significant stress.

• Work with a lender who specializes in physician mortgages A lender who regularly works with doctors will understand residency pay structures, contract-based income verification, deferred student loans, and July start date timelines. One who does not will ask for documentation that does not exist and delay your closing.
• Get pre-approval from at least two or three lenders Pre-approval is not a commitment — it is information. Even a 0.25% difference in interest rate on a $700,000 loan adds up to more than $36,000 over 30 years.
• Ask these specific questions of every lender

  • How do you treat deferred student loans in the debt-to-income calculation?
  • What is the maximum loan amount on your physician program?
  • Do you accept employment contracts as proof of income?
  • Are there any prepayment penalties on this loan?
  • What is your average time from application to closing?
• Compare APR, not just the interest rate The Annual Percentage Rate (APR) includes fees, points, and other costs that the headline interest rate does not. Always compare APR across lenders for a true apples-to-apples comparison.

• Work with a buyer's agent who understands your timeline Physician home purchases often have tight timelines — matching in March, starting in July, needing to close in May or June. Make sure your agent understands that reality and has experience working within it.
• Research the neighborhood carefully You will be working long hours. Proximity to your hospital, commute time, and neighborhood quality will matter more in daily life than you might expect. Visit at different times of day before making an offer. Check local school ratings, walkability scores, and crime statistics through tools like GreatSchools.org and the FBI Crime Data Explorer.
• Get a thorough home inspection Never skip the inspection, regardless of how competitive the market is. A $500 inspection can reveal $50,000 in problems. If the seller will not allow an inspection, walk away.
• Know what you are getting into with a condo or townhome If you are buying in a building or planned community, request the HOA's financial statements and meeting minutes. An HOA with underfunded reserves or ongoing legal disputes can become your problem the moment you close.

• Lock your interest rate Once your offer is accepted, ask your lender to lock your rate. Rate locks typically run 30 to 60 days. If your closing might take longer, discuss an extended lock period — the certainty is worth a small fee.
• Do not make any large financial moves Between offer acceptance and closing, avoid changing jobs, making large purchases, opening new credit accounts, or moving significant sums of money. Lenders re-verify your financial situation shortly before closing, and any of these can delay or derail the process.
• Review the Closing Disclosure carefully You will receive a Closing Disclosure at least three business days before closing. Read it line by line. Compare it against your Loan Estimate. Question anything that has changed or that you do not recognize. This is your last opportunity to catch errors before you sign.
• Arrange a final walk-through Conduct a final walk-through within 24 hours of closing. Confirm that all agreed repairs are complete, fixtures are in place, and the property is in the condition you expected.

• Set up automatic mortgage payments Missing a mortgage payment has a disproportionate impact on your credit score. Set up automatic payments from day one.
• Keep your closing documents in a safe place Store your mortgage documents, title insurance policy, and Closing Disclosure somewhere secure and accessible. You will need them for tax purposes and potentially when you sell.
• Revisit your investment strategy If you chose a physician mortgage specifically to keep your down payment invested, follow through. Deposit that $50,000 into a diversified index fund within the first month. The entire financial case for the physician mortgage rests on that capital being put to work. If it sits in a checking account, you have paid a higher interest rate for nothing.
• Review your overall financial picture annually Homeownership changes your financial profile significantly. Revisit your budget, insurance coverage, and investment strategy at least once a year — and more often in the first few years as your income grows.