TLDR:
Summer is the most competitive homebuying season — and for physicians, it’s often when they’re transitioning into residencies, fellowships, or new attending roles. While physician mortgage loans offer huge advantages, the fast pace and high pressure of summer can lead to costly mistakes. This blog outlines the top pitfalls doctors should avoid when buying a home this season — and how to navigate the process with confidence.

Why Summer Is a High-Risk, High-Reward Time to Buy

From mid-May through August, the real estate market heats up — especially in cities with major hospital systems. New medical graduates, relocating physicians, and families with school-aged children all move during this window.

This creates:

• Higher prices
• Shorter listing times
• More competition
• And unfortunately — more opportunities to rush and make poor decisions

For physicians using a specialized mortgage product, understanding the nuances of the process is crucial.

Pitfall #1: Waiting Too Long to Start the Mortgage Process

One of the most common mistakes physicians make in summer is delaying pre-approval. Whether you’re wrapping up medical school or transitioning between hospitals, it’s easy to put off paperwork. But in a seller’s market, a delayed application can cost you the home you want. Or get caught not having time to find the right loan program for your needs.

With a physician mortgage loan, you can qualify using a signed employment contract — meaning you don’t need to wait until you’re receiving paychecks. If you’re unsure how that works, review this breakdown of how a doctor mortgage can be approved before you start residency.

✅ Tip:

Start the pre-approval process at least 60–90 days before your planned move-in date. That gives you time to compare lenders, shop for homes, and close on schedule.

Pitfall #2: Not Using a Physician-Savvy Loan Officer

Physician loans are not standard products. Some lenders offer them as niche options — and many loan officers only handle a few per year. Working with someone unfamiliar with the nuances of these programs can lead to missed opportunities or even disqualification.

Look for someone who:

• Knows how to underwrite using a job contract
• Understands medical student loan structures
• Has experience working with residents and early-career physicians

This is particularly important when timing is tight. A lender unfamiliar with physician loans might delay your closing or quote incorrect terms.

If you’re unsure how to evaluate lenders, this guide explains how to compare bankers who understand physician mortgages versus those who don’t.

Pitfall #3: Overestimating What You Can Afford

During a hot summer market, it’s easy to get caught up in bidding wars or stretch your budget for a dream home. But just because you qualify for a certain amount doesn’t mean you should borrow it.

Physician loans allow for higher loan amounts with little or no down payment — which is helpful. However, if you’re still in training or your job comes with uncertainty (such as limited hours or contract renewals), it’s wise to be conservative.

Use our Doctor Mortgage Calculator to model realistic monthly payments. Remember to factor in:

• Property taxes
• Homeowners insurance
• Maintenance or HOA fees

If you’re unsure how to estimate affordability, our article on how big of a house a physician can afford walks you through the key calculations.

Pitfall #4: Ignoring the Importance of DTI (Debt-to-Income Ratio)

Most physicians carry substantial student loan debt — and that can affect your mortgage application. Fortunately, many physician mortgage programs offer flexible DTI treatment, such as:

• Ignoring deferred student loans
• Using income-driven repayment (IDR) plans
• Applying a lower percentage to total loan balance

Still, every lender has different rules. Not clarifying how your loans will be handled can lead to surprises.

To understand how DTI is calculated and how it impacts your homebuying power, review our deep dive into debt-to-income ratio and how it affects mortgage limits.

Pitfall #5: Not Considering Your Post-Residency Plans

A common trap residents fall into: buying a home during training without thinking about what happens after. If your program lasts 3–4 years and you plan to move for fellowship or another job, that property needs to either:

• Be easily rented out, or
• Be located in an area where resale is strong

Before you buy, think beyond your residency or contract timeline. Will this home serve you — or be a burden — two or three years from now?

Pitfall #6: Skipping the Inspection or Waiving Contingencies

In competitive summer markets, some buyers are tempted to waive inspections or remove contingencies to make their offers more attractive. For physicians juggling time and stress, skipping steps might feel like a shortcut.

But skipping inspections can lead to:

• Unexpected repairs
• Costly foundation or HVAC issues
• Mold, roof damage, or legal zoning problems

A home may look great in a 15-minute tour — but without an inspection, you’re gambling with your financial future.

Pitfall #7: Not Understanding Loan Types or Structures

Most physician loans are 30-year fixed-rate loans, but many lenders also offer:

• Adjustable-Rate Mortgages (ARMs)
• 15-year loans with accelerated payoff
• Hybrid options for short-term buyers

Each structure comes with pros and cons. For example, ARMs may offer lower starting rates, but adjust after 5–7 years — ideal if you plan to move by then.

This explainer on different types of doctor loans outlines how each option compares.

Pitfall #8: Overlooking Neighborhood Logistics

Physicians often focus solely on the house — forgetting to evaluate:

• Commute time to the hospital
• Noise levels (especially if on-call)
• Proximity to support services like grocery stores, childcare, or parks

Your home should support your lifestyle — not complicate it. Be realistic about how often you’ll use amenities or how much travel time matters when you’re working 80-hour weeks.

Pitfall #9: Forgetting That Rates Aren’t Everything

It’s easy to obsess over mortgage interest rates — especially when news headlines focus on daily changes. But the total cost of ownership includes far more than just your rate:

• PMI (which physician loans waive)
• Monthly taxes and insurance
• Maintenance and HOA fees

Even if physician loans sometimes carry slightly higher interest rates than conventional loans, they often result in lower overall monthly costs due to the elimination of PMI and flexible terms.

This breakdown of how to get the best mortgage rates — including for doctors can help you compare offers wisely.

Pitfall #10: Assuming You Have to Rent First

Many physicians — especially new residents — assume they must rent before buying. But if you have:

• A signed job or residency contract
• A decent credit score (typically 700+)
• A desire to stay in the area for 3+ years

…you may qualify to buy a home before your first paycheck.

Don’t let myths prevent you from exploring your options. This guide debunks common myths about physician mortgages that still hold many doctors back.

Final Tip: Don’t Go It Alone

Even with all the advantages of physician loans, buying a home is still a complex process — especially in summer. Work with professionals who understand your profession and your goals:

• A lender who specializes in physician mortgages
• A real estate agent experienced with relocating doctors
• A trusted advisor or financial planner who can help you evaluate your budget

According to a recent article by U.S. News, the majority of buyer mistakes stem from rushing and failing to ask the right questions early.

Final Thoughts: Your License Is Valuable — So Is Your Time

You’ve spent years investing in your medical career. Now, invest time in getting your home purchase right. The summer rush can be intense — but it doesn’t have to be overwhelming.

By understanding the most common pitfalls and preparing proactively, you can use a physician mortgage loan to secure a home that supports your lifestyle, goals, and financial future.

Thinking about buying this summer?
Start with our Doctor Mortgage Calculator to explore what you can afford — then connect with a physician loan expert who can walk you through your best options.