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Welcome to the latest episode of the Physician Cents Podcast, where we explore complex financial topics tailored specifically for physicians. Whether you're a medical student, resident, fellow, or attending physician, you're going to find valuable insights that can help you increase your financial IQ, further your financial journey, and improve your overall well-being. Hosted by Chad Chubb and Tyler Olson, let’s dive in!
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After years of moving through medical school, residency, and fellowship, buying your first home can feel like a major win. Then the bills start showing up, and you realize the mortgage payment is only one piece of the cost.
Your cash needs may include 2% to 6% of the purchase price for closing costs, prepaid taxes and insurance, moving expenses, repairs, new blinds, utility deposits, HOA dues, and even special assessments. A low down payment doesn't mean you'll need little cash.
Residents, fellows, and attending physicians all need a plan for these expenses before making an offer. Let's start with the costs that can hit your bank account before you even get the keys.
Homeownership creates costs before, during, and after closing. The mortgage payment gets most of the attention, but it isn't the only check you'll write.
Closing costs may include the appraisal, inspections, lender fees, title insurance, attorney or settlement services, recording fees, transfer taxes, prepaid property taxes, homeowners insurance, and prepaid interest.
On a $500,000 home, 3% equals $15,000. That's cash you may need in addition to your down payment, moving expenses, and initial repairs.
Some current estimates look lower because they count only selected lender and settlement fees. For planning purposes, the CFPB's broader 2% to 5% range is safer because your total cash needs can also include prepaid taxes, insurance, and interest. Fees vary by location, property type, lender, and loan program.
Before closing, compare your Loan Estimate and Closing Disclosure. The Loan Estimate arrives early in the process, while the Closing Disclosure shows the final terms and costs. You should receive the Closing Disclosure at least three business days before closing.
Physician loans can help when student loan balances are high, savings are limited, or you're buying shortly after signing a new employment contract. Many programs offer low or zero down payments, no private mortgage insurance, and more flexible student-loan underwriting.
That doesn't mean you can show up to closing with an empty bank account. You may still need cash for:
Programs from Bank of America, Huntington, Truist, Wintrust, First National Bank, BMO, PNC, and SoFi can differ in credit rules, loan limits, rates, reserve requirements, and fees. Compare the actual loan terms, not just the advertised down payment.
Zero down doesn't mean zero cash needed.
Rolling closing costs into the loan can make the purchase easier today, but it increases your loan balance. You then pay interest on those costs for years. Sometimes that tradeoff is reasonable. Automatically accepting it is not.
Your principal and interest payment is only the starting point. Add property taxes, homeowners insurance, HOA dues, utilities, and a maintenance reserve before deciding whether the home fits your budget.
A lender's quoted payment may include some of these expenses, or it may show only principal and interest. Ask for the full monthly housing cost and compare that number with your attending-physician income, student loan payments, disability insurance, childcare, and other fixed expenses.
Maintenance can be unpredictable during the first year. A water heater, appliance, roof issue, or special HOA assessment can turn a comfortable budget into a stressful one quickly.
Property taxes, insurance, utilities, HOA dues, and maintenance don't disappear when the mortgage is paid off. Those recurring costs are part of owning the home for as long as you live there.
Your seller's current bills are not always a reliable forecast of what you'll pay. Property taxes, insurance, HOA charges, utilities, and maintenance costs can all change after closing.
Regular HOA dues cover ongoing expenses such as landscaping, shared amenities, common-area repairs, staffing, insurance, and reserve contributions. Those dues can rise when insurance premiums increase, staffing costs go up, maintenance needs expand, or the association needs to strengthen its reserves.
A special assessment is separate from regular dues. It can fund a roof, elevator, exterior repairs, roads, drainage, parking garage, pool, or another major project. That bill may arrive after you move in, sometimes when you are already managing a new mortgage and other first-year expenses.
Before buying, review the HOA budget, reserve study, reserve balances, meeting minutes, governing documents, insurance coverage, rental rules, and any pending assessments. Ask whether the association has approved or discussed major repairs. Approval requirements vary by state and association, so don't assume homeowners must always vote before an assessment is issued.
A home sale can trigger a property tax reassessment. The seller may have benefited from an older assessment, a homestead exemption, or a temporary tax abatement. Their current tax bill may be much lower than yours after closing.
Ask the county assessor how the property will be reassessed and whether the sale changes the calculation. Your escrow payment can also rise when taxes or insurance premiums increase. The Consumer Financial Protection Bureau's escrow guidance explains why your total monthly payment may change.
Homeowners insurance isn't locked in at closing. Premiums can change at renewal based on claims, the home's age, replacement costs, wildfire risk, flood exposure, hurricanes, or severe storms. Get an insurance quote before making an offer, not after you have committed to the house.
Utility deposits and installation fees are easy to overlook. So are higher heating and cooling bills, water and sewer charges, trash service, internet setup, pest control, lawn care, snow removal, and security systems.
The seller's monthly bills may not match yours. A larger home, older HVAC system, poor insulation, extreme climate, or swimming pool can push these costs much higher. Ask for recent utility records when available, then build your budget with room for seasonal spikes and services you previously handled as a renter.
Your mortgage payment is only the base layer. The real cost includes every service required to keep the home safe, comfortable, and functional.
The first days of homeownership can feel like a spending marathon. None of these bills has to be a crisis, but moving costs, unfinished rooms, and early repairs can drain your cash quickly when they arrive together.
You may need movers, a truck rental, storage, deep cleaning, changing locks, paint, curtains, light fixtures, furniture, appliances, household tools, and basic supplies. Even small purchases add up when every room needs something.
Window coverings deserve special attention. Blinds and curtains can cost several thousand dollars for a whole house. Measure the windows and price the coverings before closing, especially if the home has many windows or unusually large ones.
Your lease can create another cash-flow problem. Early termination fees, lost deposits, or required notice periods may force you to pay rent and a mortgage at the same time. Ask your landlord about the exact move-out rules before you set a closing date.
New hardware, outlets, switches, shelving, garage storage, landscaping, lawn equipment, tree work, and cosmetic changes can turn into a surprisingly large first-month bill. The house may be safe and livable, yet still feel unfinished.
Create a wish list before shopping. Separate safety and function from appearance. A faulty outlet, missing handrail, or drainage problem belongs near the top. New cabinet pulls or decorative lighting can wait.
Get two or three quotes for work, and compare the actual products being installed. Identical-looking services and materials can have very different prices. A short pause can keep a long list of upgrades from becoming a credit-card balance.
A general inspection can identify safety concerns, aging systems, moisture, mold, plumbing problems, roof concerns, and electrical defects. But it cannot guarantee that nothing will fail after closing. InterNACHI's inspection standards explain that a general inspection is visual, limited, and not technically exhaustive.
Older, complex, or high-value homes may justify targeted inspections, such as HVAC, sewer scope, chimney, mold, roof, pest, structural, or lead-based paint reviews. HUD also encourages buyers to arrange a detailed inspection and research the inspector's qualifications. Read what each inspection covers and excludes before assuming you have every risk checked.
The best time to prepare for home repairs is before you make an offer. Protect your cash flow by planning for the first year, not just qualifying for the mortgage.
Don't use every available dollar to buy the house. You still need cash for immediate move-in costs, repairs, deductibles, utility deposits, and unexpected bills.
Create separate savings buckets for:
The right reserve depends on your income, the home's age, your location, insurance costs, family needs, and access to other assets. The CFPB uses 1% of the home's purchase price per year as a common maintenance budgeting rule, but older homes or expensive properties may require more.
A physician mortgage can reduce the down payment. It doesn't eliminate the need for liquidity. Relying on credit cards or extra clinical shifts every time something breaks can turn a repair into a long-term financial problem.
Divide your projects into three groups:
Finish essential work first. Delay nonessential renovations until your savings have recovered. Painting and some projects are easier before furniture arrives, but convenience doesn't make them free. Set a defined budget before the shopping begins.
Model the mortgage, property taxes, insurance, HOA dues, maintenance savings, student loan payments, disability insurance, retirement contributions, childcare, and lifestyle spending together. A home that works only when you pause retirement savings or pick up every extra shift is too expensive.
If you may relocate after residency or fellowship, include the transaction costs of selling later. Agent fees, repairs, moving expenses, taxes, and a new purchase can make a short ownership period costly.
Before making an offer or closing, take these steps:
Revisit the budget after three months. Your actual utility bills, maintenance needs, and spending habits will give you better numbers than an estimate.
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Buying your first home can be a rewarding milestone, but the purchase price and mortgage payment don't show the full financial picture. Plan for roughly 2% to 5% in closing costs, keep cash available after closing, review HOA and property tax risks, compare service quotes, and delay cosmetic projects when your budget needs room to recover.
Preparation helps physicians enjoy their home without sacrificing emergency savings, financial goals, or family time. Tax, mortgage, insurance, and financial advice should be tailored to your income, loan program, location, and overall financial plan.
The best of the best list is a paid sponsorship, but these are professionals/companies that Tyler and Chad collaborate with within their own practices or have been vetted to earn a spot on this list. By supporting our sponsors, it allows Chad & Tyler to dedicate more time to you and the Physician Cents community. If you ever have a question (or not a great experience, which we don’t expect!) about a sponsor, please let us know. We call it the “best of the best” for a reason, and we will maintain that standard for our listeners & viewers.
This information is for general purposes only. This information is not intended to be a substitute for specific professional financial, tax, or legal advice, as individual circumstances vary. Please see a financial professional, CPA, and/or an attorney in regards to your own individual situation.
Wealthkeel’s Advisory Services and Financial Planning offered through Vicus Capital, Inc., a Federally Registered Investment Advisor. WealthKeel LLC, 615 Channelside Drive, Suite 207, Tampa, FL 33602 -- 267.590.9533.
Olson Consulting LLC, Offering Advisory Services and Financial Planning, is a State-Registered Investment Advisor.
A podcast designed specifically for physicians, offering a breakdown of complex financial topics to help you develop your financial IQ, further your financial journey, and improve your well-being. Whether you're a medical student, resident, fellow, or attending physician, you're sure to learn something new that will benefit your journey.
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Conversations helping graduating medical students to attending physicians build a strong financial foundation
