BSW Physician Glossary: your offer letter and your mortgage, decoded
Two documents land in your inbox the same month you match or sign with Baylor Scott & White: an employment agreement full of PPTO, TFTO, and wRVU, and a mortgage pre-approval full of DTI, PMI, and rate locks. This glossary defines the ~25 terms that actually move money — each in plain English, then in the real terms of buying a house in Temple. Built by Taylor Dasch, an EG Realty agent who has closed 100+ Bell County transactions and works the BSW relocation lane.
What do BSW physicians actually need to know before house-hunting in Temple?
Your Baylor Scott & White contract terms and your mortgage terms are linked, and getting them wrong costs real money. A physician loan lets most residents and attendings buy with 0–5% down and no PMI, and many lenders will qualify you on your signed contract instead of paystubs — so you can close before your first shift. But your DTI still has to clear, your student loans still count (the way they count depends on your repayment plan), and a low PGY salary caps your real budget far below your eventual attending number. Below: the BSW-side terms (PGY, wRVU, PPTO, TFTO, PSLF) and the mortgage-side terms (physician loan, DTI, PMI, escrow, rate lock, buydown), each with the Temple real estate consequence.
- Physician loan: 0–5% down, no PMI, contract-based income — the default tool for BSW buyers.
- PGY-1 reality: ~$60–65K resident salary supports roughly a $230–$280K house in Temple, not the attending budget.
- Student loans count: IBR/PAYE/SAVE payments hit your DTI; a $0 deferred payment is not always counted as $0.
- Close before day one: a signed BSW contract dated within ~60–90 days can replace paystubs for income.
- PSLF + buy: owning a home does not break Public Service Loan Forgiveness — BSW is a qualifying nonprofit employer.
- Temple median: ~$290K, so most resident budgets and nearly all attending budgets clear the market.
Most relocation glossaries stop at “PMI means private mortgage insurance.” That is useless when you are deciding whether to put 5% down on a $340K house in a neighborhood near the BSW campus three weeks before orientation. Every term below ends with the part that matters: what it does to your offer, your monthly payment, or your timeline.
What do the BSW employment terms mean — and which ones affect your mortgage?
These come straight off your Baylor Scott & White agreement. Lenders read some of them; the rest set the salary number everything else depends on.
Your training year, counted from the start of residency. PGY-1 is intern year; a 3-year program ends at PGY-3, surgery and specialties run to PGY-5 through PGY-7+. Your number maps directly to a salary step on the BSW resident pay scale.
Real estate impactA PGY-1 in Temple earns roughly $60–65K, which a physician lender will typically stretch to a $230–$280K purchase. Your budget grows with each PGY step, but it does not jump to the attending number until you finish — buy for the salary you have, not the one you’ll have in four years.
A fully credentialed physician who has completed residency (and any fellowship) and now practices independently. This is when your income roughly triples, signing bonuses and relocation stipends appear, and “income guarantee” contracts become common.
Real estate impactAn attending contract is the strongest mortgage file a physician lender sees — many will close 60–90 days before your start date on the signed agreement alone. A signing bonus can cover closing costs; a relocation stipend can fund the down payment. If you are moving from resident to attending, your buying power changes category, not just degree.
Optional sub-specialty training after residency (cardiology, GI, etc.). A fellow is paid on a step above senior resident but still well below attending.
Real estate impactA 1–3 year fellowship is the classic “buy or rent?” gray zone. If you’ll be in Temple short-term, run the breakeven honestly — closing costs plus selling costs often need 2–3 years of appreciation to clear. See the resident buy-vs-rent math.
The productivity unit BSW (and most systems) use to measure and partly pay attending physicians. Each procedure or visit is assigned a wRVU value; many attending contracts pay a base plus a per-wRVU rate above a threshold.
Real estate impactwRVU-based income is variable income. Lenders usually want a track record (often two years) before counting the bonus portion, so a brand-new attending may be qualified on base salary only. Don’t budget your mortgage on the productivity upside you haven’t earned yet.
BSW’s combined paid-leave bank covering vacation, personal days, and short illness, accrued by hours worked and tenure. It is the bucket you draw from for time off.
Real estate impactIndirect but real: plan a PPTO day for your closing and final walkthrough. Texas closings are in-person at the title company, and a same-week funding delay can mean a second trip. Knowing how thin your PPTO bank is in PGY-1 affects how much closing friction you can absorb.
A scheduling/leave concept used alongside PPTO in some BSW roles — time off that is tracked or banked against hours worked rather than drawn from the standard PTO accrual. Exact mechanics vary by department and contract, so confirm yours with HR.
Real estate impactSame as PPTO: your available time off drives how much in-person availability you have for showings, inspections, and closing during a brutal first rotation. Front-load house decisions before orientation when you actually have margin.
A $0 student-loan payment is not always a $0 in the mortgage math. Residents on income-driven repayment (IBR / PAYE / SAVE) often have payments near $0 during training. But conventional underwriting can be required to impute a payment — frequently 0.5% to 1% of the total balance per month — even when your actual statement says $0. On $250K of student debt that’s a phantom $1,250–$2,500/month dropped onto your DTI. Physician-loan programs are the workaround: most exclude deferred or IDR student loans, or count only the actual documented payment. This single underwriting difference is why a resident can qualify for a house on a physician loan and get denied on a conventional one.
How do student loans and PSLF change what house you can buy?
For most physicians, student debt — not income — is the number that decides the mortgage. Here’s the vocabulary lenders actually run.
Federal plans that cap your monthly student-loan payment at a percentage of discretionary income instead of the standard 10-year amount. During residency these payments are often a few hundred dollars or near $0.
Real estate impactThe plan you’re on determines whether a lender uses your real ~$200 payment or an imputed one. On a physician loan, the actual IDR payment usually counts — which protects your DTI. Pull your most recent statement before applying; the documented number is your ammunition.
Forgives the remaining federal student-loan balance after 120 qualifying monthly payments while working full-time for a qualifying nonprofit or government employer. Baylor Scott & White, as a nonprofit health system, is a qualifying employer.
Real estate impactBuying a home does not interfere with PSLF — your home is unrelated to loan forgiveness. Staying on a low IDR payment for PSLF actually helps your mortgage by keeping your counted student-loan payment small. Confirm your BSW entity’s nonprofit status on your PSLF employer certification; not every affiliated practice qualifies identically.
A temporary pause on student-loan payments. Common during residency, but it stops PSLF qualifying-payment counting and is treated unpredictably by underwriting.
Real estate impactThis is the trap. Conventional lenders frequently impute a payment on deferred loans (the phantom payment problem above). A documented small IDR payment is almost always better for your mortgage than a $0 deferred one. If you’re house-hunting, an active repayment plan with a paper trail beats a pause.
What do the mortgage terms on your pre-approval actually mean?
The financing side. These define your down payment, your monthly number, and the date you can close.
A mortgage product built for physicians and certain other clinicians. The defining features: low or zero down payment (commonly 0–5%, sometimes up to ~$750K–$1M with no PMI), no private mortgage insurance, and income qualification based on a signed employment contract rather than pay history. Most also exclude or discount student debt.
Real estate impactThis is the default tool for BSW buyers and the reason a resident with $250K of student loans and zero savings can still buy. The trade-off is a slightly higher rate than a 20%-down conventional loan. Compare it honestly against builder financing incentives. See physician loan vs. builder incentives in Temple.
Your total monthly debt payments (mortgage, car, minimum credit cards, student loans) divided by your gross monthly income. Lenders cap it — often around 43–50% depending on the program. The single most important number in your file.
Real estate impactFor physicians, DTI is almost always a student-loan story, not an income story. The exact same buyer can pass or fail depending on how the lender counts student debt — which is why the loan product matters more than the rate. Get your DTI calculated before you fall in love with a $400K listing.
Insurance that protects the lender (not you) when you put less than 20% down on a conventional loan. It adds roughly $100–$300/month and stays until you reach ~20% equity.
Real estate impactPhysician loans skip PMI entirely even at 0–5% down — that’s a real monthly savings of $1,200–$3,600/year versus a low-down conventional loan. It’s one of the largest concrete advantages of the doctor-loan path for a resident who can’t put 20% down.
Pre-qualification is a quick estimate from numbers you state. Pre-approval is a verified commitment after the lender pulls credit and reviews documents. In a real market, sellers act on pre-approvals.
Real estate impactIn Temple, list a physician-loan pre-approval letter with any offer; it signals a serious, low-risk buyer. A pre-qual alone can get your offer skipped on a competitive listing. Ask your lender for a full pre-approval, not the faster pre-qual.
A lender’s guarantee to hold your interest rate for a set window (often 30–60 days) while you close. Protects you if rates rise; some locks include a one-time “float-down” if rates fall.
Real estate impactFor BSW buyers closing on a future start date, a longer lock (or an extended-lock program) matters because your timeline is set by orientation, not the market. Ask specifically about lock length and float-down before you commit — a 30-day lock is useless if your close is 75 days out.
Paying upfront to lower your interest rate. A permanent buydown (points) lowers the rate for the life of the loan; a temporary buydown (e.g., 2-1) lowers it for the first 1–2 years, then it steps up to the note rate. Often paid by a builder or seller as a concession.
Real estate impactTemple builders frequently offer rate buydowns as an incentive on new construction. A temporary 2-1 buydown can ease a tight PGY-1 budget for the first two years — but you must qualify at the final, higher rate, and your payment will jump. Take the concession; don’t budget around the teaser payment.
Two meanings. (1) During the deal: a neutral title company holds your earnest money and documents until closing. (2) After closing: the lender collects property taxes and homeowner’s insurance with your monthly payment and pays them on your behalf.
Real estate impactIn Texas, the escrow line item is large — Bell County has no state income tax but property taxes run roughly 1.8–2.3% of value, so on a $300K home your escrow can add $450–$575/month on top of principal and interest. Out-of-state physicians routinely underestimate this. See Temple property taxes in detail.
Earnest money is a good-faith deposit (often 1% of price) held in escrow and credited at closing. In Texas, a separate option fee ($100–$500) buys you a defined “option period” — usually 5–10 days — to inspect and walk away for any reason and get your earnest money back.
Real estate impactThis is a Texas-specific protection most out-of-state buyers have never heard of. Your option period is your inspection insurance — use it. A good agent structures the option fee and period to protect a relocating buyer who can’t be on-site for every step.
Your “no state income tax” raise gets partly eaten by property tax — and physician loans don’t fix that. Doctors relocating from California, New York, or Illinois see a bigger take-home number in Temple and assume housing is cheap. It mostly is — but Bell County property taxes (roughly 1.8–2.3% of assessed value annually) are high precisely because Texas funds schools and services without an income tax. On a $350K home that’s about $525–$670/month in escrow alone, before principal, interest, and insurance. The physician loan gets you in the door with little down; it does nothing about the tax line. Underwrite the full payment — P+I+T+I — not the sticker price. Tax rates also vary by neighborhood and ISD, so two identical houses a mile apart can carry different monthly numbers.
Which terms cost you money if you get them wrong?
The five that decide whether you qualify and what you pay. Updated June 2026.
| Term | What it controls | BSW buyer takeaway |
|---|---|---|
| Physician loan | Down payment + PMI + student-debt treatment | 0–5% down, no PMI, qualifies on contract. The default BSW tool. |
| DTI | Whether you qualify at all | Driven by how student loans are counted — pick the loan that excludes them. |
| IDR (IBR/PAYE/SAVE) | Your counted student-loan payment | Documented low payment beats a $0 deferred one for underwriting. |
| Escrow (taxes) | Your real monthly payment | Add ~$450–$670/mo on a $300–$350K home. Underwrite P+I+T+I. |
| Rate lock | Your rate vs. your start date | Match lock length to your orientation date, not a 30-day default. |
Who should not rush to buy on a physician loan?
The doctor loan is powerful, not free. It is the wrong move for some BSW arrivals.
- Short-stay fellows or visiting faculty. If you’ll leave Temple in under 2–3 years, closing and selling costs usually beat your appreciation. Run the breakeven before you buy.
- Anyone planning to refinance or recast immediately. If you’re sitting on cash for 20% down and a 2-year horizon, a conventional loan may cost less overall despite PMI. Compare both.
- Buyers stretching to the attending budget on a PGY-1 salary. The loan will let you borrow; your resident paycheck still has to make the payment for years. Buy for the salary you have.
- Physicians whose BSW entity isn’t confirmed nonprofit for PSLF. If forgiveness is core to your plan, certify your specific employer before locking in a 30-year payment.
- Anyone whose contract isn’t signed yet. Contract-based qualification needs a signed agreement. A verbal match or a pending offer isn’t bankable.
BSW physician buyer questions, answered straight
Can I get a mortgage before my first day at BSW?
Usually yes. Most physician-loan programs qualify you on a signed Baylor Scott & White employment contract dated to start within roughly 60–90 days, instead of paystubs. That lets many residents and attendings close before orientation. You need the executed contract in hand — a match result or a verbal offer is not enough.
Does owning a home affect Public Service Loan Forgiveness (PSLF)?
No. PSLF forgives federal student loans after 120 qualifying payments while you work full-time for a qualifying nonprofit employer; your home is unrelated. Baylor Scott & White is a nonprofit health system, so your work generally counts toward PSLF. Staying on a low income-driven repayment plan for PSLF can actually help your mortgage by keeping your counted student-loan payment small. Certify your specific BSW entity’s status, since affiliated practices can differ.
Will my student loans stop me from qualifying?
It depends entirely on how the lender counts them. Conventional underwriting may impute a payment of 0.5–1% of your total balance per month even if your actual payment is near $0, which can sink your debt-to-income ratio. Most physician-loan programs instead exclude deferred or income-driven student loans, or count only your documented payment. That underwriting difference is the main reason a physician can qualify on a doctor loan and get denied on a conventional one.
How much house can a PGY-1 resident afford in Temple?
On a roughly $60–65K PGY-1 salary, a physician lender will typically support a purchase around $230,000–$280,000 in Temple, depending on your student-loan treatment and other debt. Temple’s median price is about $290,000 as of June 2026, so a resident budget reaches a meaningful slice of the market — especially newer construction and homes near the BSW campus. Your budget rises with each PGY step, but don’t borrow against the attending salary you don’t have yet.
Why is my monthly payment higher than I expected in Texas?
Property taxes. Texas has no state income tax, so Bell County funds schools and services through property tax — roughly 1.8–2.3% of assessed value per year. On a $300,000 home that adds about $450–$575 a month to your escrow, on top of principal, interest, and insurance. The physician loan reduces your down payment but does nothing about the tax line, so always underwrite the full P+I+T+I payment rather than the listing price.
What is the Texas option period, and why does it matter for relocating doctors?
In Texas, you pay a small option fee (commonly $100–$500) to buy an option period — usually 5–10 days — during which you can inspect the home and cancel for any reason while keeping your earnest money. It’s a buyer protection most out-of-state physicians have never encountered. For a doctor relocating to Temple who can’t be on-site for every step, a well-structured option period is your inspection insurance and your escape hatch.
Is a builder rate buydown better than a physician loan?
They aren’t mutually exclusive, and the answer depends on the numbers. Temple builders often offer rate buydowns or closing-cost credits on new construction, which can beat a standard physician-loan rate for the first years. But you must qualify at the final rate, and a temporary 2-1 buydown’s payment steps up after year two. Compare the all-in cost of each path rather than chasing the lowest teaser payment.
Where to go from here
This glossary is the dictionary. These pages are the playbook for actually buying as a BSW physician in Temple.
Baylor Scott & White Relocation Guide
The parent hub — neighborhoods, timeline, and the full move from match to keys in Temple.
Start here ↗ Guide · BuyingBSW Physician Home-Buying Guide
The step-by-step buying process for physicians — financing, timing, and Temple market specifics.
Read the guide ↗ Compare · FinancingPhysician Loan vs. Builder Incentives
The doctor-loan path against new-construction buydowns and credits — with the real Temple math.
Run the comparison ↗ Neighborhoods · BSWBest Neighborhoods Near BSW
Where physicians actually buy, ranked by commute, schools, and price near the Temple campus.
See the map ↗ Tool · ResidentsBSW Resident Affordability Calculator
Plug in your PGY salary and student loans to see your real Temple buying range.
Run your numbers ↗ Reference · TaxesTemple TX Property Taxes
The escrow line every relocating doctor underestimates — rates, exemptions, and what to budget.
Get the rates ↗Bring your contract. I’ll translate the rest.
Send me your BSW start date and your rough student-loan number, and I’ll tell you what you can realistically buy in Temple, which lenders treat physician debt correctly, and how to close before your first shift. No pitch — just the math, before you fall for a listing you can’t underwrite.
Taylor Dasch · EG Realty · 100+ Bell County closings
This glossary is educational, not financial, tax, or legal advice. Loan terms, BSW benefit definitions, tax rates, and qualifying-employer status vary by program, department, and your individual situation — verify with your lender, BSW HR, a tax professional, and your loan servicer before deciding. Taylor Dasch is a licensed real estate agent, not a mortgage lender or loan officer. Figures (salaries, tax rates, median price) are estimates as of June 2026 and change.