It can be a challenge for nurse practitioners to get mortgage loans whether you are a registered nurse or an educated nurse qualified for services. As this profession offers a lot of benefits it has its drawbacks, too. Definitely, you will be in a fulfilling role of helping others with ample job security and flexibility- plus, you will get ample growth opportunities and attractive salary. If you have been thinking about owning a home, buying a house is no small feat, especially for nurse practitioners.
So you might be thinking what is all the hype about? Why are nurse practitioners not considered for mortgage loans? Or is it really possible for nurses to own a home? The short answer for this is yes, nurses can own their own homes with the help of home buying programs. When applying in banks, several things affect a nurse’s ability to own a home, including their income, ability to budget or manage their money and the home they are willing to buy. Let’s dive into some things that you should keep in mind.
The main issue! Income:
The very first thing and the most important is that banks and other lenders see your flexible schedule as unstable as they like to see the consistency of 9-5 jobs with regular employment in spite of making large salaries. When performing risk assessment and evaluating the income, the biggest hurdle is to prove stability to them. Furthermore, it is difficult to account for the shifts you have worked as they see full time as a sign of a stable job. To simply put: for many lenders and banks this flexibility is seen as a complex financial situation and you might end up having a difficult time getting approved for a mortgage. They will only see the employment gaps, overtime, night differentials instead of regular and high incomes.
The solution: It is all about how you manage your income and expenses:
Money management is an important aspect even if you want to buy the smallest of things and when it comes to owning a house you need to budget and exercise proper management of records- your salary and your expenses regardless of how much you earn. When your records are pretty clear and you seem to be financially responsible- means that you keep track of the money, what’s coming in, going out, and how much your intended savings are, this can prove to be a positive point when nurse practitioners are applying for mortgage loans.
The income of each month may vary for every nurse, one might be earning $20.00 per hour while another might bring $40.00 an hour, depending on the place they work. You will have to maintain records every month, start thinking about every purchase or bill that you have to pay? How much are you paying for rent? What are your other expenses including food, essentials, and entertainment? If you are still a student and paying for student loans or have a credit card debt to pay. These considerations are important when looking at managing your money.
It is important that you represent a clear picture of what’s going on in your finances among the lender so that they can entertain your idea of purchasing a home.
Another thing that raises the question among lenders is the nature of your Income:
You might have consistent paychecks as a nurse, so you might be thinking that you will not have much trouble getting the mortgage. But in most cases, lenders only use your base pay and this base pay doesn’t include all the money you make. Staff nurses have an upper hand in this, as they will have a base income whether they are working part-time or full-time to present to lenders. If you are working part-time and bringing in average money you might not get approved for the mortgage. On the other hand, if you are working full time, and making stable income and having regular employment then you are probably at a good place in the eyes of the lender. Nurses’ pay is broken down into many different aspects like overtime, shift differentials, and more, it totally depends on the lender how they use your income.
Besides the nature of work, experience level can be considered:
Though it is important that you know the number of hours you work in a month, to ensure that various other pays are also included. It will ensure that you get a more accurate idea of how much you are bringing in. Apart from your income and nature of the job, your experience level in nursing plays a major role in determining your annual income. If a nurse has just started out having only a year of experience might significantly make much less as compared to a nurse who has been in this profession for 10 years. For entry-level nurses, you can gather as much information about your income so that you can be in a position to start scouting for houses. Even if your salary is average, but you have been keeping a good check on your income and expenses and have no history of taking debts, your savings for years could help you with the mortgage loans.