Young MDs – what FICO score is needed to buy a home?

You CAN qualify for a doctor mortgageIn a recent article by the Wharton School of Business at the University of Pennsylvania, it was revealed that some millennials – including young doctors, dentists, pharmacists, attorneys and physician assistants –  are not looking to purchase a home simply because they don’t believe they can qualify for a mortgage.

The article quoted Jessica Lautz, the National Association of RealtorsManaging Director of Survey Research, as saying that there is a significant population that does not think they will be approved for a mortgage and doesn’t even try. The article also quoted Fannie Mae CEO Tim Mayopoulos :

“I do think that there’s a sense out there in the marketplace among borrowers that credit may not be available, especially for people with lower credit scores.”

So what credit score is necessary?

A recent survey reported that two-thirds of the respondents believe they need a very good credit score to buy a home, with 45 percent thinking a “good credit score” is over 780.

In actually, the FICO score on closed loans (as reported by Ellie Mae) is much lower and has been dropping over the last several months. In February of 2015 a 732 FICO score was required, but in October of this year the requirement has dropped to 722. by email or call Josh Mettle at 801-747-1210 to talk about your situation. We’d love to help you get into your new home.


Bottom Line

Young professionals –  doctors, dentists, pharmacists, attorneys and physician assistants – who are considering a home purchase should now. You may be surprised how much the requirements for a mortgage have eased.

Thanks to KCM blog for this post.

Should I pay a mortgage interest rate over 4%?

Mortgage interest rates for doctors and physicians

Mortgage interest rates, as reported by Freddie Mac, have increased over the last several weeks. Along with Freddie Mac, Fannie Mae, the Mortgage Bankers Association and the National Association of Realtors are all calling for mortgage rates to continue to rise over the next four quarters.

This has caused some purchasers to lament the fact they may no longer be able to get a rate less than 4%. However, we must realize that current rates are still at historic lows.

Here is a chart showing the average mortgage interest rate over the last several decades.


Here is another chart showing rates from 1971 until today. In October on 1981, mortgage rates hit a high of of 18.45%! That must have hurt. Kind of puts rates of just over 4% into perspective, wouldn’t you say?


Bottom Line

Though you may have missed getting the lowest mortgage rate ever offered, you can still get a better interest rate than your older brother or sister did ten years ago; a lower rate than your parents did twenty years ago and a better rate than your grandparents did forty years ago.

Would you like to compare different loan scenarios to see how current mortgage rates will impact YOUR budget? Call Josh Mettle at 801-747-1210 and ask for a Total Cost/Savings Analysis or to get answers to any questions you have about physician loans or conventional loans. You can always reach us at as well.

Thanks to KCM blog for this post.

Homeowner’s net worth in 2016 45x greater than a renter

Did you catch what our headline said? It bears repeating: A homeowner’s net worth in 2016 will be 45 times greater than a renter’s net worth:

Every three years the Federal Reserve conducts a Survey of Consumer Finances in which they collect data across all economic and social groups. The latest survey, which includes data from 2010-2013, reports that a homeowner’s net worth is 36 times greater than that of a renter ($194,500 vs. $5,400).

In a recent Forbesarticle the National Association of Realtors’ (NAR)Chief Economist Lawrence Yun predicts that in 2016 the net worth gap will widen even further to 45 times greater.

The graph below demonstrates the results of the last two Federal Reserve studies and Yun’s prediction:


Put Your Housing Cost to Work For You

Simply put, homeownership is a form of ‘forced savings’. Every time you pay your mortgage you are contributing to your net worth. Every time you pay your rent, you are contributing to your landlord’s net worth.

The latest National Housing Pulse Survey from NAR reveals that 80% of consumers believe that purchasing a home is a good financial decision. Yun comments:
“Though there will always be discussion about whether to buy or rent, or whether the stock market offers a bigger return than real estate, the reality is that homeowners steadily build wealth. The simplest math shouldn’t be overlooked.

Would you like to  see if buying is a good option for you, using our tool called the Total Cost/Savings Analysis? Wouldn’t you love to increase your wealth? Give Josh Mettle a call at 801-747-1210 or to request your complimentary Total Cost/Savings Analysis or to start the process of buying your home.

To read more about the ever increasing advantages of owning vs. renting, please read our first post: Rent crisis – what does it mean for you? And be sure and check out the second article, Need another reason to buy your own home? as well as this one The news is not good for renters.

Thanks to KCM blog for this post.


Wow, look at this handsome home!

Our creative clients Meg and Bryson Miles responded to our request for pictures to showcase favorite parts of their new home on our Pinterest board. They’ve been in their home about 6 months now and have a gorgeous place!

“We have had so much fun renovating this little home, and these are three pictures showing rooms we love.”

Miles' mantel

“We love having a big mantel to decorate for the holidays in our living room, and a gas fireplace to keep the place cozy.” Such an elegant living room and we love the Halloween mantel!


“We love to entertain in our dining room.” Don’t you just love the fun Italian soda set-up they have for guests on the 4th of July? What a fun and creative idea! And look at that great chandelier.


“And after renovating the kitchen, we love how much lighter it feels with all the white.” Wow, what a crisp and clean kitchen. Love the aqua metal chairs at the table and the white painted cabinets. We’d love to sit and share some freshly baked cookies in that lovely kitchen!

Why so much paperwork when applying for a mortgage?

Why so much paperwork for mortgage?We are often asked why there is so much paperwork mandated by the bank for a mortgage loan application when buying a home today. It seems that the bank needs to know everything about us and requires three separate sources to validate each and every entry on the application form.

Many buyers are being told by friends and family that the process was a hundred times easier when they bought their home ten to twenty years ago.

There are two very good reasons that the loan process is much more onerous on today’s buyer than perhaps any time in history.

1. The government has set new guidelines that now demand that the bank prove beyond any doubt that you are indeed capable of affording the mortgage. During the run-up in the housing market, many people ‘qualified’ for mortgages that they could never pay back. This led to millions of families losing their home. The government wants to make sure this can’t happen again.

2. The banks don’t want to be in the real estate business. Over the last seven years, banks were forced to take on the responsibility of liquidating millions of foreclosures and also negotiating another million plus short sales. Just like the government, they don’t want more foreclosures. For that reason, they need to double (maybe even triple) check everything on the application.

HoweverApproved, there is some good news in the situation. The housing crash that mandated that banks be extremely strict on paperwork requirements also allowed you to get a mortgage interest rate probably at or below 4%.

The friends and family who bought homes ten or twenty ago experienced a simpler mortgage application process but also paid a higher interest rate (the average 30 year fixed rate mortgage was 8.12% in the 1990s and 6.29% in the 2000s). If you went to the bank and offered to pay 7% instead of <4%, they would probably bend over backwards to make the process much easier.

Bottom Line

We’re just grateful that we can offer mortgages at historically low rates to our clients.

Please call Josh Mettle at 801-747-1210 or to lock down your rates while they are insanely low.

Rents are on the rise, and we wrote a series about it:  Rent crisis – what does it mean for you? Be sure and check out the second article, Need another reason to buy your own home? plus you can read the last in the series here: The news is not good for renters.

Thanks to KCM blog for this post.

The news is not good for renters

Buy or rent?This is the third and last installment on our series on the rent crisis. Go here to read the first post, Rent crisis – what does it mean for you?  Be sure and check out the second article, Need another reason to buy your own home?

These are just a few headlines in the last month regarding rent:

  • Renters Will Continue to Struggle for the Next Decade, Harvard Study Says
  • A Bleak Future for Renters
  • Renters, get out your checkbooks, hikes are coming
  • Rents rise to ‘crazy’ levels: Zillow

Seems more than a bit alarming, doesn’t it? According to this article on, it is not looking great for renters:

Property managers in the U.S. are raising rents – possibly by as much as 8 percent next year – as demand rises and vacancies fall, a new survey from property rental website found.

“An overwhelming 88 percent of property managers raised their rent in the last 12 months, and there does not appear to be any signs of stopping,” the survey of more than 500 U.S. property managers who used found.

A different post on talked about the advantages of buying to keep housing costs stable:

Buyers, however, appear to be sitting pretty, likely spending around 15.1 percent of their monthly income on mortgage payments, down from around 21.3 percent in the 1985-2000 period, the study found.

“If you can possibly come up with a down payment, then it’s a good time to buy a home and start putting your money toward a mortgage,” Dr. Svenja Gudell, chief economist at Zillow said.

Even if mortgage rates rise to 6 percent next year, homebuyers will still spend 30 percent or less of their monthly income on mortgages in more than 90 percent of the metro areas Zillow analyzed, the study found.

Even if you don’t have a down payment, we have some zero or very low down payment options to help you become a home owner!

Would you like to have us crunch the number to see if buying is a good option for you, using our tool called the Total Cost/Savings Analysis? Wouldn’t it help your peace of mind to know that a landlord won’t be able to raise rents every year? Give Josh Mettle a call at 801-747-1210 or write to us here: to request your complimentary Total Cost/Savings Analysis.

Need another reason to buy your own home?

This is the second post on the rental crisis and how it could impact you and your family. To read the first post, click here.

Business Insider’s recent article’s headline screams “Soaring rents are a problem that will only get worse“. doctor_thought_bubble._buy_or_rent_10

Rents are going up fast, wages are stagnant and rental demand are skyrocketing. The Business Insider article said:

Rent is a problem.

A report out Monday from Bloomberg’s Patrick Clark highlights a study finding that the number of American households that spend at least half their income on rent could rise 25% in the next decade.

And the worst part of the study suggests that even if wages rise, the situation won’t improve that much for renters.

If wages rise as expected, things will actually get a lot worse.

An article in Fortune titled “Why the renting crisis could be about to get a lot worse” said:

The number of U.S. households that fork out at least half of their income on rent is set to increase by 25% to 14.8 million over the next decade.

The largest increase is expected to hit older adults, Hispanics, and single-person households the most, adding to a growing list of severely cost-burdened renters who are dedicating half their monthly income to household payments, according to a joint study conducted by the Enterprise Community Partners and the Harvard Joint Center for Housing Studies.

If there ever was a time when buying a home to keep your housing costs stable makes sense, that time is now! We have a tool called the Total Cost/Savings Analysis that shows whether buying a home makes financial sense for you and we’d love to use it to help you decide. We won’t ever push you if the numbers don’t add up. Give Josh Mettle a call at 801-747-1210 or write to us here: to request your complimentary Total Cost/Savings Analysis.

How fast are homes selling in your state?

Homes in Alaska, California, Colorado, Massachusetts, Michigan, North Dakota, Oregon, South Dakota, Texas, Utah and Washington sold in 30 days or less in July through August. Homes in 28 states sold in 31 to 60 days in 28 states. Homes sold in less than 60 days in 39 out of 50 states and Washington D.C.

How Fast Are Homes Selling In Your State?

One way to be much more attractive to sellers is to get a full Credit and Income Approval by our team, rather than just getting Pre-approved. Why? We’ll gather and review all your documents as well as run Automated Underwriting for FHA, Conventional, USDA or VA loans. When our team is done with your Credit and Income Approval, it’s like a blank check. You find a home and we’ve got the cash ready for you. When a seller knows your mortgage is a fully approved, you move to the head of the pack when they are reviewing all their offers.

If you are seeing where rents are heading (UP!) and are thinking of buying in Utah, please call Josh Mettle at 801-747-1210 and get your full Credit and Income Approval started. Or feel free to drop us a line here: We’d love to go over your situation to see if buying now makes sense for you.

Rent crisis – what does it mean for you?

praying_doctor_cropped_1_8This is the first in a 3 part series on the what some are calling the rent crisis. We think it is vital information for our clients because housing is such a large part of the monthly budget of most residents and attendings. Knowing what the experts are saying will enable you to make smarter decisions about your housing for the future. Don’t just hope for the best like the doc in our picture, arm yourself with knowledge.

In an article featured in the latest issue of Bloomberg Business, the first two lines read:

How bad can rental affordability in the U.S. get? Even worse.

That’s pretty bad.

They went on to say:

The number of U.S. households that spend at least half their income on rent—the “severely cost-burdened,” in the lingo of housing experts—could increase 25 percent to 14.8 million over the next decade. More than 1 million households headed by Hispanics and more than 1 million headed by the elderly could pass into those ranks. Households shouldn’t spend more than 30 percent of income on housing, by the general rule of thumb.

The grim figures come from a report out today from Enterprise Community Partners, an affordable-housing nonprofit group, and Harvard’s Joint Center on Housing Studies. To reach their conclusions, the researchers considered various scenarios for wage and rent growth over the next decade.

Even if you are not severely cost burdened, this not good news if you plan to continue renting. With so many new people joining the ranks of renters, demand is high, causing rents to increase. This next bit highlights why owning your home is a better option if you are able:

New data from the Census Bureau last week showed that the percentage of U.S. households spending 30 percent of their income on housing was lower in 2014 than in any year since 2005. That’s probably because of home buyers taking out new mortgages and homeowners refinancing existing loans at lower rates, housing economist Jed Kolko said. Renters don’t have that option, and face an increasingly alarming future.

Be watching for the next two posts on the rental crisis and what that could mean for your financial well being.

Would you like to see how buying a home could increase your net worth? Call Josh Mettle at 801-747-1210 and ask for your complimentary Total Cost/Savings Analysis. Or you can write to us here: We’ll always give unbiased advice – our reputation depends on it. If buying doesn’t make sense for you right now, we’ll tell you that. Don’t delay – rents are on the rise!

Real Estate Market Update

Super interesting information we thought you’d find valuable if you are buying or already own a home in Utah.

It turns out the inventory (supply) of homes in the U.S. is near a 14 year low. If you look at inventory of homes for sale as a percentage of U.S. households, we are currently at a 30 year low. That means supply is way low!

Housing supply is near a long term low

New home construction is starting to pick up, but as you can see in the chart below, we are still equal to the lowest number of new homes being built in 56 years.

Housing starts are on the rise

And lastly, interest rates, which drive demand, are still near historic lows.

Mortgage rates are near historic lows

Supply is low, demand is high…  This bodes extremely well for Utah home prices and indicates the value of your home is likely to continue to increase in the coming years.

Have you been thinking about buying a home or possibly upgrading to a new home? We have excellent physician home loan programs, professional loan programs and conventional loans that offer great advantages and are designed to make the homebuying process as smooth as it can be. Please give Josh Mettle a call at 801-747-1210. We’d love to help you into your next home!

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