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  • Avatar soundsystem 
    Participant
    Status: Physician
    Posts: 58
    Joined: 12/14/2017
    all the details come in and you can really get paralysis by analysis. But these forms are required by law and should be pretty across lenders. Apply to as many as you feel up to. Mortgage officers with different banks will know their approximate rates with different programs, so if you’ve reached out already, you can usually trust them. As you go, you’ll be able to weed out a few pretty easily (really high rates, closing costs, etc).

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    I’ve been working with several banks, and all of them need to see lot of documents prior to locking the rate, including the purchase contract. My situation may be a bit more complicated since I am not a W2 employee but rather a partner in a practice where I am paid by distributions, so this may complicate things (practice deposits money monthly on my LLC account).

    in reply to: Question about mortgage lenders #227299 Reply
    Avatar soundsystem 
    Participant
    Status: Physician
    Posts: 58
    Joined: 12/14/2017

    Don’t start applying for mortgages until you’re under contract with a home.  Then just go crazy applying to everybody.  I got the best rate after applying to about 12-15.

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    OK. I’m about to go under contract. Do you basically try to get approval from all lenders and see who offers the best interest? The way I’m understanding the process is that until the actual underwriters look at your application, you don’t really know if you’re fully approved and what interest/conditions you’re getting. Therefore, I suppose it makes sense to try to get approved by multiple lenders to complete final numbers. Is this assessment correct?

    in reply to: Question about mortgage lenders #227237 Reply
    Avatar soundsystem 
    Participant
    Status: Physician
    Posts: 58
    Joined: 12/14/2017

    My quicken rate for a jumbo is 4%. 15 year. Loan $650k, 25% equity, perfect credit. Rates apparently substantially higher where I live.

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    I didn’t realize rates were so location dependent

    Avatar soundsystem 
    Participant
    Status: Physician
    Posts: 58
    Joined: 12/14/2017

    I had to take a pass on this one. The fact that docs are living in $4.5M houses, paying $50k in property tax, paying 11% state income tax, etc. is so far from my experience and my world that I could not wrap my mind around the whole thing.

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    50k in property taxes not that extreme in certain areas in the country. Property tax rates over 2.5% are the norm in some counties in NY/NJ.

    in reply to: CYAI – A $4.5M house and a $2.5M rental?!? #224950 Reply
    Avatar soundsystem 
    Participant
    Status: Physician
    Posts: 58
    Joined: 12/14/2017

    I got 3.25, Jumbo, 15 year fixed with Quicken Loans. I shopped around and this was the best rate with closing cost costs at 5k. Also liked I didn’t have to move money to WF or BofA.

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    Closing costs at 5k??? what was the purchase price? this sounds like a very good deal!

    Avatar soundsystem 
    Participant
    Status: Physician
    Posts: 58
    Joined: 12/14/2017

    If you’re early 30s and no kids, I’d agree with one of the posts above. I’d not buy a big house in the suburbs and would rather go to a nice condo in the city depending where in the country you are. As you start having kids then you can start reconsidering your housing situation.

    in reply to: 700k house in cash or 3m house with mortgage? #221463 Reply
    Avatar soundsystem 
    Participant
    Status: Physician
    Posts: 58
    Joined: 12/14/2017
    Earnest refinancing bonus

    What part of the country are we talking about? This changes the whole conversation. If he’s talking Manhattan, 3 million would get you a nice 3-br in a luxury building in a nice location, probably 2000 sq ft. For someone living with a partner, this is not unreasonable to have (1 master bedroom, 1 room for office, 1 guest room). Of course, you’re paying the premium of living in a good neighborhood in Manhattan and enjoying great amenities in the building.

    in reply to: 700k house in cash or 3m house with mortgage? #221367 Reply
    Avatar soundsystem 
    Participant
    Status: Physician
    Posts: 58
    Joined: 12/14/2017

    Lifestyle creep happens very easily in south florida, so i can see how someone in his situation would spend a lot of money. Expensive cars, restaurants, houses, vacations, services, etc… He’s probably lived a rich person life, therefore the little savings.

    in reply to: $1.4M peak salary and cannot afford to retire #209576 Reply
    Avatar soundsystem 
    Participant
    Status: Physician
    Posts: 58
    Joined: 12/14/2017

    Could you share the link where you found the list? It seems that the list only includes NYC physicians. I’d be curious to know how it looks in the rest of the country. I recognize several names on the list, and clearly these salaries are mostly coming from administration duties/leadership positions. Nothing wrong with that in principle.

    As a side note, if you’d ask one of those guys on the list about the FIRE movement, I wonder what they’d say.

    in reply to: List- Ridiculously High income doctors #206108 Reply
    Avatar soundsystem 
    Participant
    Status: Physician
    Posts: 58
    Joined: 12/14/2017

    For similar salary, 1099 comes way ahead since your effective tax rate is much less relative to W2. Of course, depends how you structure your ‘business’, but that it’s typically the case.

    in reply to: W2 employee blues #205373 Reply
    Avatar soundsystem 
    Participant
    Status: Physician
    Posts: 58
    Joined: 12/14/2017

    As a follow up to my prior post, is that a general thing that someone going from 1099 to W2 should expect to earn more once switched to W2? I see so many advantages with 1099 (decreased effective tax rate, many tax deductions, lot of room for tax deferred accounts, etc…).

    in reply to: 1099 to W2 mid-way this year #203324 Reply
    Avatar soundsystem 
    Participant
    Status: Physician
    Posts: 58
    Joined: 12/14/2017

    So are you supposed to be sending all pertinent documents (filling out applications, credit check, bank statements, etc…) every time you’re getting quotes? Most of the physician lenders require me to do that prior to give me any quotes. With the bigger banks not the case.

    in reply to: Question about mortgage lenders #203322 Reply
    Avatar soundsystem 
    Participant
    Status: Physician
    Posts: 58
    Joined: 12/14/2017

    When I was shopping for my mortgage about 15 mos ago, I applied for both physician and conventional mortgages with and without 20% down.  The best interest rate and lowest closing costs offer I got was from a physician mortgage with 0% down.  YMMV

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    better rates with 0% down vs 20% down? I’m a little surprised.

    in reply to: Question about mortgage lenders #203288 Reply
    Avatar soundsystem 
    Participant
    Status: Physician
    Posts: 58
    Joined: 12/14/2017

    Hopefully you were able to get some salary increase to account for the change from 1099 to W2? That should compensate for the losses in extra taxes.

    in reply to: 1099 to W2 mid-way this year #203285 Reply
    Liked by SLC OB
    Avatar soundsystem 
    Participant
    Status: Physician
    Posts: 58
    Joined: 12/14/2017

    @dayman

    House was paid off in 3 yrs.
    no debt
    NW north of 6
    Yearly Spending <<100 Yearly saving>300

    yearly spending <100 is very impressive. Any kids? Private school for 3 kids is already close to 100k/year!!!

     

     

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    spending less than 100K a year is not impressive.

    it’s impressive that people spend 1500 a month on groceries. that’s impressive. my monthly grocery bill is probably closer to 300 (can’t say for sure, but i do grocery shopping and i’m estimating that’s what it is)

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    Spending less than 100k is impressive if there are several kids involved and you want to send them to a good private school. As I said, depending on where you live, it’s not uncommon to pay 30k/year for private school. If you have 3 kids, that’s already 90k.

     

    Regarding groceries, the same thing. Are you talking about a single person or a family of 4 or 5? Where do you buy your groceries? Personally, food is very important, and there is no way you can buy good quality food for less than 300/month.

    in reply to: help figuring out housing/life the bay area #184755 Reply
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