Physician Mortgage With a New Employment Contract

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Physician Mortgage With a New Employment Contract

A physician mortgage with a new employment contract may allow an eligible medical professional to buy a home before starting work or receiving the first paycheck.

This can be especially valuable for physicians who are:

Completing residency.
Finishing fellowship.
Relocating for an attending position.
Joining a hospital or medical group.
Transitioning out of military service.
Moving to Texas from another state.
Changing medical systems.
Beginning a new academic appointment.

The lender may be able to use income stated in the new contract rather than requiring an established history with the new employer.

But a signed contract does not automatically make the income acceptable.

The lender must determine:

Whether the contract is fully executed.
Whether employment is guaranteed.
Whether material contingencies remain.
When employment begins.
Which compensation is fixed.
Whether credentialing is complete.
Whether the borrower has sufficient reserves.
Whether the position is W-2 employment or independent contracting.
Whether the physician loan program accepts the profession and career stage.
Whether employment terms remain unchanged before closing.

The strongest strategy begins with a detailed contract review before the physician makes an offer on a home.

Can You Get a Physician Mortgage Before Starting Your New Job?

Yes, certain physician mortgage programs permit qualification before the borrower begins employment.

The lender may qualify the physician using an executed employment contract that identifies:

Physician’s name.
Employer.
Position.
Employment status.
Compensation.
Start date.
Contract term.
Relevant contingencies.

The acceptable timeframe varies by lender.

A physician program may allow the employment start date to occur:

Before closing.
Shortly after closing.
Several weeks after closing.
Within another program-specific period.

A later start date may require additional cash reserves.

The lender must establish that the physician can cover the mortgage and other obligations during the period between closing and employment.

What Makes an Employment Contract Acceptable?

An acceptable contract generally needs to be complete, signed, and specific.

The lender may look for:

Identified physician and employer.
Defined medical position.
Full-time or part-time status.
Start date.
Guaranteed base salary.
Compensation frequency.
Contract length or employment term.
Signatures from all required parties.
Conditions that must be satisfied.
Termination provisions.
Repayment requirements for bonuses or relocation assistance.

The underwriter needs enough information to determine that the income is:

Documented.
Stable.
Expected to continue.
Available within the permitted timeframe.

A brief email saying, “We plan to hire Dr. Smith at approximately $350,000,” may not be sufficient.

Fully Executed Means Properly Signed

A contract generally should be signed by:

The physician.
An authorized representative of the employer.

The lender may question a document when:

Only the physician has signed.
A signature page is missing.
An amendment is unsigned.
The start date is blank.
Compensation is described only in a separate unsigned exhibit.
The employer’s acceptance is unclear.
The agreement remains under negotiation.

All contract pages, schedules, exhibits, and amendments should be provided.

Submitting only the page showing salary may delay underwriting because the lender must review the complete employment arrangement.

Offer Letter vs. Employment Contract

An offer letter may be sufficient under some programs if it clearly establishes the required employment terms.

Other programs may require a formal employment agreement.

An offer letter should generally identify:

Employer.
Borrower.
Position.
Salary.
Start date.
Employment status.
Outstanding contingencies.
Required signatures.

The title of the document is less important than its content and enforceability under the program.

A “letter of intent” may not be sufficient if it is:

Nonbinding.
Preliminary.
Subject to negotiation.
Missing a definite salary.
Missing a start date.
Unsigned by the employer.
Dependent on a future formal agreement.

The lender must be able to rely on the document as evidence of actual future employment.

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Guaranteed Base Salary Is Usually the Strongest Income

The most usable contract income is generally fixed base compensation.

For example:

Guaranteed annual base salary: $400,000.
Monthly qualifying income: approximately $33,333.

The lender may divide annual guaranteed salary by 12.

Compensation becomes more complicated when the contract includes:

RVU production.
Collections-based compensation.
Quality incentives.
Call pay.
Shift differentials.
Administrative stipends.
Signing bonuses.
Retention bonuses.
Partnership distributions.
Profit sharing.
Stock or equity compensation.

A contract’s projected total compensation is not necessarily the qualifying income.

Projected Production Income

A physician contract may state:

Base salary: $300,000.
Expected production compensation: $150,000.
Estimated total compensation: $450,000.

The lender may be able to use the guaranteed $300,000 base salary.

The projected $150,000 may not be usable without an established history.

Production income may depend on:

Patient volume.
Procedures.
Collections.
RVUs.
Department performance.
Quality metrics.
Time spent building a patient base.
Employer discretion.

Projected earnings are not the same as guaranteed earnings.

The physician should ask the lender to identify exactly which contract income is being used.

Guaranteed Draws

Some contracts provide a guaranteed draw against future production.

The lender must determine whether the draw is:

True guaranteed compensation.
Recoverable advance.
Loan from the practice.
Temporary minimum.
Subject to reconciliation.
Repayable if production is insufficient.

A draw that must later be repaid may not be treated the same as nonrecoverable guaranteed salary.

The underwriter may request clarification from the employer.

Signing Bonuses

A signing bonus may provide useful closing funds, but it is generally not continuing monthly income.

The lender may treat the bonus as an asset after it has been:

Received.
Deposited.
Properly documented.
Verified as available.

The lender may review:

Bonus amount.
Payment date.
Bank deposit.
Repayment provisions.
Forgiveness schedule.
Employment conditions.

A signing bonus may need to be repaid if the physician leaves the position early.

That creates a potential future obligation even when the bonus helps with:

Down payment.
Closing costs.
Moving expenses.
Reserves.

The bonus should not be annualized as recurring income unless the lender has an acceptable basis for doing so.

Relocation Assistance

A physician may receive employer-paid relocation assistance.

This may include:

Moving reimbursement.
Temporary housing.
Closing-cost assistance.
Lump-sum relocation payment.
Direct payment to a moving company.

The lender will determine whether the benefit is:

Reimbursement.
Taxable compensation.
A forgivable advance.
A loan.
Available for mortgage closing costs.
Subject to repayment.

Funds expected in the future may not be available for closing unless the program permits them and the lender can document receipt or direct payment.

Contract Contingencies

Physician employment contracts frequently contain contingencies involving:

Medical licensing.
DEA registration.
Hospital privileges.
Credentialing.
Board eligibility.
Board certification.
Background screening.
Drug testing.
Completion of residency.
Completion of fellowship.
Immigration status.
Work authorization.
Malpractice coverage.
Employer approval.
Reference verification.

A conditional contract is not automatically ineligible.

But the lender may need evidence that material conditions have been satisfied before closing.

For example, the lender may request:

Texas medical license.
Credentialing confirmation.
Hospital privilege approval.
Completion letter from residency.
Employer confirmation.
Updated written verification.

If the condition remains unresolved, the lender may be unable to rely on the income.

Credentialing Delays

Credentialing is a common source of physician mortgage delays.

A contract may state that employment begins on August 1, subject to successful credentialing.

If credentialing is incomplete near closing, the lender may question whether:

Employment will begin on time.
The salary is guaranteed.
The contract remains effective.
The borrower has satisfied all conditions.

A delayed credentialing process can affect:

Income eligibility.
Closing date.
Required reserves.
Rate-lock expiration.
Purchase contract.
Temporary housing plans.

Physicians should begin credentialing early and retain written confirmation of progress and approval.

Medical Licensing

A physician relocating to Texas may have a signed contract before receiving a final Texas medical license.

The lender may determine whether the license is:

A material condition of employment.
Expected before the start date.
Already approved.
Pending routine processing.
Subject to unresolved requirements.

A lender cannot assume licensing will be completed merely because the physician expects approval.

If the contract requires an active Texas license before employment, the lender may require evidence that the condition has been satisfied.

Start-Date Requirements

The acceptable employment start date depends on the loan program.

A physician loan may have its own rules.

A conventional loan may also allow future employment income under specified conditions.

Under Fannie Mae’s current employment-contract guidance, an eligible contract-only transaction without a pre-delivery paystub is generally limited to:

Purchase transaction.
One-unit primary residence.
Fixed base income.
A fully executed, non-contingent offer or contract, or confirmation that all employment conditions are satisfied.
A start date no later than 90 days after the note date.
Required financial resources covering the applicable period before employment begins.

Fannie Mae permits either six months of the subject property’s PITIA or sufficient financial resources to cover the borrower’s qualifying monthly obligations for the period from the note date to the employment start date, plus one month. Fannie Mae Selling Guide: Employment Offers or Contracts

Physician portfolio programs may use different timeframes and reserve calculations.

The actual program should be confirmed before the purchase contract is signed.

Closing Date vs. Note Date vs. Start Date

These dates should be reviewed together:

Purchase closing date.
Mortgage note date.
First payment date.
Employment start date.
First paycheck date.

The physician may begin work on July 15 but not receive the first paycheck until July 31 or August 15.

The household must have enough liquidity to cover:

Closing costs.
Moving expenses.
Mortgage payments.
Rent or temporary housing.
Student-loan payments.
Childcare.
Living expenses.
Payroll delay.

The lender’s reserve calculation is an underwriting minimum.

The household’s actual cash-flow needs may be greater.

Reserve Requirements

A physician mortgage with a new employment contract may require additional reserves when employment begins after closing.

Reserves are assets remaining after the transaction that can cover future obligations.

Eligible reserve assets may include:

Checking accounts.
Savings accounts.
Money-market funds.
Stocks.
Bonds.
Mutual funds.
Eligible retirement accounts.
Other approved liquid assets.

The required amount may depend on:

Time before employment starts.
Complete housing payment.
Other monthly liabilities.
Loan amount.
Down payment.
Credit.
Loan program.
Whether another borrower has current income.

The lender may deduct funds used for:

Down payment.
Closing costs.
Prepaid expenses.
Debt payoff.

Only the remaining eligible amount is available for reserves.

Review Mortgage Reserve Requirements Explained and Using Retirement Accounts for Mortgage Reserves.

Current Income During the Transition

A physician may still receive income from:

Residency.
Fellowship.
Existing employer.
Military service.
Moonlighting.
Spouse’s employment.
Paid leave.

The lender may consider current income when evaluating resources available before the new position begins.

However, current income may not be usable as continuing qualifying income if it will end.

For example:

Fellowship salary ends June 30.
New attending position begins August 15.
Closing occurs July 15.

The fellowship income may help demonstrate available cash flow through June, but it is not continuing after the physician transitions.

The new attending salary may provide the actual qualifying income.

Employment Gaps

A gap between training and employment is not automatically disqualifying.

The lender will evaluate:

Length of gap.
Reason for gap.
Start date.
Available reserves.
Whether employment is guaranteed.
Whether the position relates to the physician’s training.
Whether the physician will have income during the gap.

A short, planned transition after residency or fellowship may be understandable.

A longer gap may require:

Additional explanation.
More reserves.
Different program.
Later closing date.
Employment to begin before closing.

Review Employment Gaps and Mortgage Qualification.

W-2 Employment vs. 1099 Independent Contracting

A new physician contract does not necessarily establish W-2 employment.

The physician may be:

Employee.
Independent contractor.
Practice owner.
Partner.
Shareholder.
Member of an LLC.

The distinction matters.

A contract for 1099 services may be treated as self-employment rather than fixed employment income.

The lender may require:

Self-employment history.
Tax returns.
Profit and loss statement.
Business formation documents.
Bank statements.
Expense analysis.
Evidence of prior experience.

A newly signed 1099 agreement may not receive the same future-income treatment as a W-2 employment contract.

This is one of the most important issues to identify before preapproval.

Related resources include Mortgage Qualification After Changing From W-2 to Self-Employment and Income From a New Business and Mortgage Qualification.

Partnership Track Is Not Guaranteed Income

A contract may describe a future opportunity to become a partner.

That anticipated ownership income generally cannot be treated as current guaranteed compensation.

Partnership may depend on:

Tenure.
Performance.
Approval by existing partners.
Capital contribution.
Patient production.
Practice profitability.
Future agreement.

The mortgage should be qualified using income that is currently documented and eligible.

Future partnership income may improve household finances later, but it should not be relied upon for today’s payment.

Contract Length and Termination Provisions

The lender may review whether the employment agreement is:

At will.
Fixed term.
Automatically renewable.
Subject to termination without cause.
Subject to a probationary period.
Dependent on funding or hospital approval.

An at-will employment provision does not automatically make income unusable. Many salaried employees work under at-will arrangements.

But unusual termination language or a very short guaranteed term may create additional questions.

The lender wants reasonable support that the income is expected to continue.

Contract Amendments Before Closing

Physician contracts can change after the loan application.

Possible changes include:

New start date.
Revised salary.
Different work location.
Added contingency.
Delayed credentialing.
Change from W-2 to 1099.
Reduced hours.
Change in specialty.
Withdrawal of signing bonus.
Revised contract term.

The borrower must tell the lender about material changes.

The lender may verify employment again shortly before closing.

A change that appears favorable may still require the loan to be re-underwritten.

For example, a higher projected production opportunity may be less usable than the original guaranteed salary.

Verification Before Closing

The lender may contact the employer to confirm:

Contract remains valid.
Start date remains unchanged.
Compensation remains unchanged.
Conditions have been satisfied.
Physician is expected to begin work.
Employment has not been withdrawn.

A loan can be delayed or denied if the employer reports:

Start date postponed.
Credentialing incomplete.
Contract rescinded.
Salary reduced.
Position changed.
Employment contingent on an unresolved event.

Borrowers should avoid assuming that providing the initial contract completes the employment review.

Physician Loan vs. Conventional Future-Employment Qualification

A physician loan is not always necessary simply because the borrower has not started work.

A conventional loan may also allow an eligible borrower to qualify using a future employment contract.

A physician loan may provide additional value through:

Lower down payment.
No monthly PMI.
Student-loan treatment.
Higher loan amount.
Resident or fellow eligibility.
Portfolio flexibility.

A conventional loan may provide:

Lower pricing.
More lender options.
Standard fixed-rate financing.
Lower fees.
Potentially more favorable long-term economics.

The physician should compare both.

Review When You Should Not Use a Physician Loan.

Physician Loan vs. Jumbo Loan

A physician purchasing a higher-priced home may qualify for:

Physician jumbo loan.
Traditional jumbo loan.
VA jumbo loan when eligible.
Private-bank mortgage.

A traditional jumbo lender may accept the future contract under its portfolio requirements.

The physician loan may offer a lower down payment, while the traditional jumbo loan may provide better pricing with more equity.

The decision should compare:

Cash required.
Rate.
Points.
Reserves.
Fixed or adjustable structure.
Student-loan treatment.
Employment start-date rules.

Review Physician Loan vs. Jumbo Loan.

Student Loans With a New Contract

A physician transitioning from training into practice may have student loans that are:

Deferred.
In forbearance.
Entering repayment.
Enrolled in an income-driven plan.
Temporarily showing a zero payment.

The new attending income may eventually change the required student-loan payment.

The mortgage lender must use the payment required by the applicable program.

A physician-loan program may apply specialized student-loan treatment, but it does not necessarily ignore the debt.

The underwriter may use:

Credit-report payment.
Student-loan statement.
Income-driven payment.
Percentage of outstanding balance.
Another program-specific calculation.

A borrower should not rely on a temporary zero payment without confirming how the mortgage lender will calculate the obligation.

Review Student Loan Payments and Mortgage Qualification and Deferred Student Loans and Mortgage Approval.

Dual-Physician Households

A household may have two new physician contracts with different:

Start dates.
Salaries.
Contingencies.
Specialties.
Employers.
Credentialing timelines.

The lender must determine whether each contract independently satisfies the program.

One physician’s contract may be usable while the other’s is not.

For example:

Physician one:

Guaranteed $350,000 salary.
Fully executed contract.
Credentialing complete.
Start date 30 days after closing.

Physician two:

$250,000 estimated compensation.
Production-based.
Credentialing incomplete.
Start date not finalized.

The lender may use physician one’s income but exclude physician two’s projected compensation.

The household should not assume both contracts will receive identical treatment.

Review Two Physician Household Mortgage Strategy.

Military Physicians Transitioning to Civilian Practice

A military physician may purchase while separating from active service and beginning civilian employment.

The lender must evaluate:

Separation date.
Military income termination.
Civilian contract.
Start date.
VA eligibility.
Available entitlement.
Transition gap.
Reserves.
Continued benefits or retirement income.

Current military income may not be considered continuing if service will end shortly after closing.

The civilian physician contract may become the primary qualifying income.

The borrower should compare:

VA financing.
Physician loan.
Conventional loan.
Jumbo loan.

Review Military Income and Mortgage Qualification and Physician Loan vs. VA Loan.

Non-U.S. Citizen Physicians

A physician may have a new employment contract while working under:

Permanent residency.
Employment visa.
Another eligible immigration status.

The lender must evaluate:

Borrower eligibility.
Work authorization.
Visa expiration.
Sponsorship.
Employment contract.
Continuance.
Program requirements.

A signed contract does not override immigration or work-authorization requirements.

Physician programs differ in their treatment of permanent and non-permanent residents.

Review Buying a Home With a Non-U.S. Citizen Borrower.

How Much House Should a New Physician Buy?

A new attending salary can produce substantial mortgage qualification.

But the physician may also face:

Student-loan payments.
Lifestyle changes.
Childcare.
Practice buy-in.
Malpractice obligations.
Retirement catch-up.
Relocation expenses.
Delayed bonus income.
Higher taxes.
Uncertain production compensation.

A physician should distinguish among:

Base salary.
Expected total compensation.
Take-home income.
Comfortable housing budget.
Maximum mortgage qualification.

The lender may approve a payment based on $400,000 of guaranteed salary.

That does not determine whether the payment supports the physician’s broader financial goals.

Review How Much House Should High-Income Borrowers Really Buy? and Can We Afford This Home and Still Live Comfortably?

Do Not Budget Using the Gross Contract Amount Alone

A $400,000 annual contract does not provide $33,333 of monthly spendable income.

Actual take-home income may be reduced by:

Federal income taxes.
Medicare taxes.
Retirement contributions.
Health insurance.
Disability insurance.
Student-loan payments.
Benefits.
Other deductions.

The mortgage lender uses gross qualifying income for debt-to-income calculations.

The household should use realistic after-tax cash flow for affordability planning.

Documents to Prepare

A physician using a new employment contract should prepare:

Complete executed contract.
Offer letter.
All amendments and exhibits.
Residency or fellowship completion documentation.
Medical license.
Credentialing approval.
Hospital privilege confirmation.
Employer contact information.
Current paystubs, if applicable.
Prior W-2s.
Recent bank statements.
Investment statements.
Retirement-account statements.
Student-loan statements.
Identification and immigration documents when applicable.
Explanation of employment transition.
Documentation of signing or relocation bonus.
Current housing-payment history.

Additional documents may be required based on the program.

Preapproval Before Choosing a Home

The contract should be reviewed before the physician relies on a preapproval.

A complete preapproval should establish:

Eligible program.
Usable contract income.
Student-loan payment.
Required down payment.
Reserve requirement.
Maximum comfortable payment.
Acceptable start date.
Unresolved employment conditions.
Documentation still needed.

A preapproval based only on the physician’s estimated future salary can change significantly after the actual contract is reviewed.

Common Problems That Delay Approval

Common contract-related problems include:

Missing employer signature.
Incomplete contract.
Missing compensation exhibit.
Unclear start date.
Contract still contingent on credentialing.
Salary described as an estimate.
Compensation primarily based on production.
Position structured as 1099 contracting.
Start date outside program limits.
Insufficient reserves before employment begins.
Employer unable to verify the contract.
Contract amended after application.
Medical license still unresolved.
Offer withdrawn before closing.

Most of these issues can be identified before a purchase contract is signed.

Real Scenario: New Attending Closes Before Starting

A physician completes fellowship and signs an employment contract with:

Guaranteed salary: $375,000.
Start date: 45 days after closing.
Full-time W-2 employment.
Completed credentialing.
No remaining material contingencies.

The physician has sufficient reserves to cover the period before employment starts.

The lender qualifies the physician using the contract salary.

The borrower closes before receiving the first attending paycheck.

The strategy succeeds because the contract, start date, reserves, and credentialing were reviewed early.

Real Scenario: Projected Compensation Is Reduced

A physician contract states:

Guaranteed base salary: $250,000.
Projected production compensation: $200,000.
Estimated total: $450,000.

The borrower assumes the mortgage lender will use $450,000.

The underwriter uses only the guaranteed $250,000 because the production income has not been received historically.

The maximum approval decreases.

Potential solutions include:

Lower purchase price.
Larger down payment.
Eligible co-borrower income.
Reduced debt.
Another program.
Waiting until production income has an acceptable history.

The contract was valid.

The misunderstanding involved which compensation could be used.

Real Scenario: Credentialing Delays Closing

A physician has a signed contract beginning 30 days after the planned closing.

The contract is contingent on credentialing.

The hospital has not completed the credentialing process by the lender’s final verification.

The lender cannot confirm that all employment conditions are satisfied.

The closing is delayed until the employer provides acceptable written confirmation.

This is why credentialing should be treated as part of the mortgage timeline.

Real Scenario: Contract Is Actually 1099 Income

A physician signs an agreement showing annual compensation of $400,000.

The borrower applies for a physician loan expecting the contract to be treated as future salary.

The underwriter determines that:

The physician is an independent contractor.
No W-2 employment exists.
The borrower is responsible for business expenses.
The arrangement constitutes self-employment.

The future employment-contract calculation is unavailable under that program.

The borrower may need:

Established self-employment history.
Bank statement financing.
Another portfolio program.
A later closing.
Additional borrower income.

The compensation amount was strong, but its employment classification changed the entire analysis.

Real Scenario: Dual Physicians With Staggered Starts

A married physician household has two contracts.

Physician one begins 15 days after closing.

Physician two begins 90 days after closing.

Both contracts provide fixed base salaries, but the household must document sufficient resources for the period before both incomes begin.

The lender uses both contracts under the selected program and verifies each employer separately.

The borrowers intentionally retain additional liquidity rather than making the largest possible down payment.

That protects the household during the transition.

Questions Physicians Should Ask

Before using a new employment contract, ask:

Does my profession qualify for the physician program?
Is my position W-2 or 1099?
Is the contract fully executed?
What base income will the lender use?
Will projected RVU or production income be excluded?
Does the contract contain unresolved contingencies?
Must credentialing be completed before closing?
Is my medical license finalized?
Is the start date within the program’s limit?
How many months of reserves are required?
Can current residency or fellowship income help with the transition?
How will my signing bonus be treated?
How will student loans be calculated?
Will the employer be contacted before closing?
What happens if the start date changes?
Could I qualify conventionally instead?
Is the physician loan fixed or adjustable?
How much cash will remain after closing?
Is the payment comfortable using only guaranteed base income?

Common Misconceptions

“Any Signed Physician Contract Can Be Used”

No.

The lender must review the contract’s compensation, start date, employment status, contingencies, and likelihood of continuance.

“The Lender Will Use My Projected Total Compensation”

Not necessarily.

Guaranteed base salary is generally easier to use than projected production, RVUs, discretionary bonuses, or expected partnership income.

“I Need a Physician Loan to Use Future Income”

Not always.

Conventional and jumbo programs may permit future contract income under specific requirements.

“Credentialing Does Not Matter to the Mortgage”

It can matter when credentialing is a condition of employment.

The lender may require evidence that the condition has been satisfied.

“A 1099 Contract Is the Same as an Employment Contract”

No.

A 1099 arrangement may be treated as self-employment and require an established history or alternative documentation.

“The Signing Bonus Is Annual Income”

A one-time signing bonus is generally not recurring qualifying income, although received and documented funds may be available as assets.

“Approval Means I Do Not Need Cash Until the Job Starts”

The lender may require reserves, and the household may need even more liquidity for actual living and relocation expenses.

Real Lender Perspective

A physician mortgage with a new employment contract is not approved because the borrower has an impressive future salary.

It is approved because the lender can document:

A valid employment relationship.
Eligible fixed income.
A permitted start date.
Satisfied contract conditions.
Adequate resources before employment begins.
A complete ability-to-repay profile.

The most important review happens before the physician makes an offer.

A lender who understands physician employment should identify:

Which income is guaranteed.
Which income is projected.
Whether the position is W-2 or 1099.
Whether credentialing is complete.
What reserves are required.
Which mortgage program produces the strongest terms.

The objective is not simply to make the contract fit a physician loan.

It is to determine whether a physician, conventional, VA, or jumbo structure best supports the borrower’s transition into the new position.

Who This Guide Is For

This guide may be especially helpful for:

Medical residents.
Medical fellows.
Newly practicing physicians.
Physicians relocating to Texas.
Physicians joining a hospital.
Physicians joining a medical group.
Academic physicians.
Military physicians entering civilian practice.
Dentists.
Surgeons.
Dual-physician households.
Non-U.S. citizen physicians.
Physicians awaiting credentialing.
Physicians comparing W-2 and 1099 contracts.
Physicians purchasing before receiving their first paycheck.

Final Thoughts

A physician mortgage with a new employment contract can allow a doctor to purchase a home before the new position begins.

But the contract must do more than state an impressive compensation number.

The lender must evaluate:

Signatures.
Start date.
Guaranteed base salary.
Employment classification.
Contract contingencies.
Credentialing.
Licensing.
Reserve requirements.
Student-loan obligations.
Changes before closing.

The strongest strategy uses guaranteed, documented income and preserves enough liquidity to manage the transition safely.

Before selecting the home or mortgage, confirm:

How much contract income can be used.
Which conditions must be satisfied.
Whether the start date is eligible.
How much cash must remain after closing.
Whether another loan program offers better terms.

A well-structured physician mortgage should make the employment transition easier—not create additional financial pressure before the first paycheck arrives.