Most physicians have spent a considerable part of their life in their training. The majority of medical students shell off at least $200,000 or more as their student loan debt or even more. It makes them save a minimal amount. Their future earning scopes are high.
One of the primary tasks that a physician needs to attend is buying a residence. Funding his/her new home is where a medical candidate would require a physician loan. These loans are specially designed in a way to cater to the distinctive requirements of the Fellows, Residents and Attending Physicians. By opting in for this loan, medical candidates can save money. They can also streamline the home purchase process. Today, Physician Banks provide these loans which come with a host of benefits.
Benefits of physician loans
- Down payment
During their training period, physicians find it tough to add to their savings. Hence, the physician mortgage loans that come with zero to little down payment is always beneficial. The majority of these loans come with excellent terms, having a down payment of 5%.
- Student loans
The student loan debts act as a crucial aspect for lenders who don’t provide Physician Loans. Most of the lenders tend to count about 1% of their present loan balance as a part of their monthly payment. It makes the residence that physician’s desire tough to purchase. However, an authentic Physician Loan from physician banks will consider the student debt differently. It will stress on the income-based payments.
- Mortgage Insurance
This particular insurance premium has been waived off for the physicians. Just in case you aren’t placing 20% down, the lenders will need the payment of mortgage insurance. Furthermore, this insurance premium will usually add approximately .375% to .75% to the yearly mortgage payment. It is a significant saving that others will not have any access.
- Real estate agents
You will come across real estate agents who concentrate on physician requirements. These agents understand the home selling and buying process. They also are aware of the way to organize your offer for a competitive negotiation to procure the best physician loan. Additionally, these agents will assist you via customary inspections that will add a generic residence, lead paint inspection, pest and the like.
- Employment contracts
You have the chance to buy a residence till 60 days before the start of the new position. Conventionally, the lenders will request a pay stub before they allow you to settle on a new residence. It is confusing when you’re in a new job in an entirely new city. A Physician Loan will let you move in fast and also get acclimated to the region for two months in advance.
It is essential to understand that the situation of every physician is different. Hence, you need to know the options available for you along with the financing strategy that will work best for you. There are many other variables that you may consider. It can range from the time you decide to stay in your residence to the present rates on other debts and so on. These decisions are tricky. So you will always require professional assistance. Hence, it is essential to consult with a physician bank that will help you get organized in this.