The five myths about physician home loans and the corresponding truth

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Bank loans are competitive and complicated. Whatever you find on the web about mortgage loans on the internet is a mix of baseless fears and strange facts. Sometimes, it is difficult to tell the difference between the two. Conventional Mortgage loans involve hundreds of pages of paperwork, weeks of communication and endless research. Thankfully, physician home loans are not as hectic and complicated. Doctors have the chance to purchase their dream homes with minimum paperwork within a couple of weeks with the right loan company to help them out.

To make things easier for you, we have compiled a list of the common myths that surround physician mortgage loans.

 

Getting conventional loans from banks is the same as getting physician mortgage loans

Applying for a regular loan is the biggest mistake you can make. Most banks offer special loans for doctors and other medical professionals. These are easy to qualify for, and the terms are more flexible than the regular loans. You need to find yourself a reliable mortgage broker, who can negotiate the best prices for you irrespective of the market trends.

 

Doctors do not qualify for loans

It is true that most medical practitioners begin their career with negative net worth. They have close to $200,000 debt to pay off. If you were looking for regular bank loans, you would most certainly not qualify, but for physician home loans banks do not consider the student loan while calculating your debt to earnings ratio.

 

The credit score is flexible

There is nothing flexible or editable about credit score. Your FICO score is a representation of your financial activities, expense history, bill payment trends and much more. You can improve on it by working on it for a couple of months by paying credit card bills on time and meeting loan payment deadlines.

 

Negotiate for the lowest interest rate

It seems quite obvious. Bargaining for the lowest interest rate you can get should help you save more and get the best deal. However, have you thought about the APR? It is true that two lenders with the same interest rate can have utterly different APRs. In a majority of the cases, the renowned banks and lenders allow the potential lenders to negotiate certain fees. Other fees like the government transaction costs remain fixed, and they stay the same for each loan. That makes it imperative to pay attention to the APR, even after you land the lowest interest rates.

 

The shortest repayment term is the best choice for borrowers

When you are shopping around for loans, you will notice that the shortest repayment terms have the lowest interest rates. They come with higher monthly payments than the longer repayment terms. For example – a 15-year term might come with 2.75% interest, but it might require you to pay a much higher monthly premium than the 30 year mortgage period with a 4% interest rate. As the inflation rate increases, the monthly payment gets cheaper each year over the next 30 years. Moreover, the low monthly premiums are more manageable than the steep installments of the 15-year plan.

These are a few myths and the truth about each one you need to know before going in for home mortgage loans. Physician home mortgages are bespoke borrowing options for medical professionals. If you are thinking of buying a new home, try the doctor’s home mortgage first.

 

 

 

 

 

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