How a Signed Employment Contract May Support Mortgage Qualification
Physicians who are transitioning from training to an attending position often need to begin the mortgage process before their first paycheck arrives. A signed employment contract may allow qualification to begin — but the contract terms, start date, and program guidelines all affect whether this approach is available.
Matt Siket | Mortgage Loan Originator | NMLS #442558
How Contract-Based Qualification Works
The contract must be signed and unconditional
An offer letter or employment contract that is signed by both parties and does not contain conditions that could prevent employment may be used to support qualification.
Start date timing matters
The employment start date relative to the desired closing date affects how the income is documented and which program guidelines apply.
Income structure affects the calculation
Base salary, signing bonus, and variable compensation are treated differently. The qualifying income is typically based on the base salary in the contract.
What the Contract Needs to Include
Not every offer letter or employment agreement qualifies. The contract must meet specific criteria to be used as the basis for income documentation.
- Signed by both the physician and the employer
- Specifies a start date within a reasonable window of the closing date
- Includes base salary or hourly compensation details
- Does not contain conditions that could prevent employment from beginning
- Is from an established employer in the physician's specialty
The Start Date and Closing Date Relationship
Contract signed, start date in the future
If the contract is signed and the start date is within a reasonable window, the mortgage process may begin using the contract income. The specific window depends on program guidelines.
Closing before the first paycheck
Some physician programs allow closing before the first paycheck arrives, as long as the contract is signed and the start date is confirmed. This is the most common scenario for relocating physicians.
Video answer: can I qualify before starting my new job?
Start date already passed
If the physician has already started the new position, standard income documentation — pay stubs and verification of employment — typically takes over from the contract.
Let's Review Your Contract and Timeline
I review the contract terms, start date, and closing timeline to determine whether contract-based qualification is available and which program is the best fit.