Why are doctors opting for professional physician mortgage plans?
Physician finances have a seasonal tendency to them. It might be strange for a medical newbie, but home-hunts during the spring are more frequent than any other season. As a result, the hunt for home loans and personal loans is much higher in this season than any other time of the year. Conventional loans are not as convenient or comfortable for a physician in practice. As a doctor, you might want to access a hassle-free credit that is quick, rewarding and manageable.
The top five reasons a doctor mortgage plan is for you
People mostly believe that being a medical professional is a glamorous job that brings a luxurious life and a stupendous amount of money. That belief strengthens itself when they see the celebrity doctors host talk shows, attend national interviews or run the city offices. In reality, when a doctor begins his or her career, life is not as rewarding and opulent.
- Fresh out of med school, most doctors do not have enough savings to move to a new city, buy or rent a plush apartment, support erratic shifts and move towards career advancement.
- Doctors do not receive impressive salaries or fellowships during their time as residents and as fresh professionals.
- They walk out of medical school with an average loan of about $240,000 on their heads. Unless they have converted their monthly student loan payments to a pay-as-you-earn basis, there will be no cap on the payment amount.
- Several people attend medical school later in their lives. They graduate when they are in their 30s. However, they still have a student loan burden along with the pressure of family welfare.
- The first income of a medical professional can reach about $70,000 a year, but that does not make them great loan candidates to most banks. Without proper loan management, some doctors even pay upwards of $40,000 per month to banks and other lending institutions.
In such situations, sourcing money to buy a dream home may seem distant to impossible for many. The cost of studying medicine has become debilitating in the country, but that does not mean doctors have to compromise on their living standards and necessities of life.
Why are physician loans more amicable than conventional loans?
A physician mortgage program ensures that physicians and dentists find precisely the amount they need, on their terms. Banks and other lending institutions usually handle these loans. There is a high chance that when you take out a physician mortgage loan, the lender will draft the underwriting specifically for your convenience after consulting with you. Moreover, unlike other home loans and large sums, you can access 100% of the loan amount since the day of sanction. You won’t have to pay down 10% or 20% of the net value.
Any attending physician or a medical resident can potentially qualify as a borrower of a physician mortgage loan. Veterinarians, dentists, and other medical professionals may also be eligible for similar loans under similar terms from multiple credit unions, banks, and independent lenders.
Author: Charlie Brown