Physician Mortgage Loans For New Doctors

A physician mortgage loan is an alternative mortgage product available exclusively to physicians. Unlike many traditional mortgages, they do not have as many requirements as what traditional lenders require of borrowers of other conventional loans. Although physicians are eligible for physician mortgage loans, many still believe that a doctor cannot qualify for physician mortgage loans.

Physicians who need additional cash for medical expenses because of unexpected medical situations such as hospitalization, surgery or emergency treatment are the ones who should be considered. Because these young doctors are considered high risk, they require more flexible loans compared with other young doctors. However, this does not mean that these young doctors are ineligible for physician mortgage loans. In fact, the criteria for these young doctors are very lenient and they can obtain physician mortgage loans easier than other young doctors. These young doctors can get these loans even if they have a bad credit history. It all depends on how good a doctor's credit standing is.

There are two ways to qualify for physician mortgage loans, one is the secured and the other is the unsecured doctor loan. Secured doctor loan requires you to put up your property as collateral. This is good for those who have home equity or other property such as in the form of stocks, bonds, expensive automobiles. In exchange, they get a certain amount as a loan. This loan is usually longer term with higher interest rates. In addition, they would be required to pay a high amount for the lender's fee and closing costs.

On the other hand, unsecured doctor loans are much easier to apply for. The application process involves no collateral requirement. You only need to prove your identity. You can do so by presenting your most recent pay stubs, current address and employment records. With this, the lender will assess whether you are able to repay the amount on time. In addition, you do not have to worry about paying for high interest rates.

Although there are plenty of lenders that offer physician mortgage loans, it is important to find one that you can trust. Research online for some of the best home loan quotes from top financial institutions. This way, you will be able to compare different home loan quotes and lenders. You can even apply online if you prefer. This makes the whole process very convenient. Do not hesitate to ask questions to the lenders regarding the terms of the loan, interest rates and closing costs.

Physician mortgage loans can be a great help to new doctors who want to purchase a house in order to supplement their income. There is however a need for cautiousness because of the high interest rates. For this reason, young doctors should be sure to calculate the total cost of a home loan and consult their financial advisors about this. This is important so that they can avoid getting into trouble with their mortgages. It is also advisable for them to obtain doctor loans only from reputable lenders.