I’d Like to Get Pre-Approved. Where Should I Start?
As a physician, you have invested a considerable amount of time and money into your education and training. Once you have completed your medical residency, it’s time to start your career as a physician. This often involves buying a home or starting your own practice. However, obtaining financing as a physician can be challenging due to a large amount of debt most physicians carry.
Fortunately, there are physician loans designed specifically for doctors that can make it easier to obtain financing. In this article, we will discuss how to get pre-approved for a physician loan and why it’s a good option for physicians.
- Physician loans are specialized loans designed specifically for doctors and other medical professionals. These loans typically offer more favorable terms than traditional loans, including lower down payments and higher loan limits.
- To get pre-approved for a physician loan, you need to find a lender that specializes in these types of loans, gather your financial documents, and submit your application. If you are pre-approved, you will receive a pre-approval letter outlining the amount you are pre-approved to borrow and the terms of the loan.
- Physician loans offer many benefits that make them an attractive option for doctors, including lower down payments, no private mortgage insurance (PMI), favorable terms, and the ability to defer student loan debt for up to 12 months.
What is a Physician Loan?
A physician loan is a specialized loan designed for doctors and other medical professionals. These loans typically offer higher loan limits and more favorable terms than traditional loans. Physician loans are intended to help new physicians who have a large amount of student loan debt but also have high earning potential.
One of the key benefits of a physician loan is that it requires a lower down payment than traditional loans. Some physician loans don’t even require a down payment, whereas traditional loans require a 20% down payment.
How to Get Pre-Approved for a Physician Loan
The first step in obtaining a physician loan is to get pre-approved. Pre-approval is the process of determining how much money you can borrow before you start house hunting or looking for a practice to buy. Pre-approval helps you understand your budget and what you can afford.
Here are the steps to get pre-approved for a physician loan:
Step 1: Find a lender that offers physician loans Not all lenders offer physician loans. Therefore, it is important to find a lender that specializes in these types of loans. You can do this by searching online for “physician loans” or asking other physicians for recommendations.
Step 2: Gather your financial documents To get pre-approved for a physician loan, you will need to provide your lender with various financial documents, including:
- Tax returns from the past two years
- Pay stubs from the past two months
- Proof of employment (such as an offer letter or contract)
- Proof of medical degree (such as a diploma or transcript)
Step 3: Submit your application Once you have gathered all of your financial documents, you can submit your application to the lender. The lender will review your application and determine if you are pre-approved for a physician loan.
Step 4: Receive your pre-approval letter If you are pre-approved for a physician loan, the lender will provide you with a pre-approval letter. This letter outlines the amount you are pre-approved to borrow and the terms of the loan.
Why Physician Loans Are a Good Option for Doctors
Physician loans offer many benefits that make them an attractive option for doctors. Here are some of the key benefits:
- Lower down payment: Physician loans require a lower down payment than traditional loans, which makes it easier for doctors to get financing.
- No private mortgage insurance (PMI): Physician loans do not require PMI, which can save doctors thousands of dollars over the life of the loan.
- Favorable terms: Physician loans typically offer more favorable terms than traditional loans, such as lower interest rates and higher loan limits.
- Deferred student loan debt: Some physician loans allow doctors to defer their student loan debt for up to 12 months, which can help reduce their monthly debt payments.
As a physician, obtaining financing can be challenging due to a large amount of debt you may have from medical school. However, physician loans are designed specifically for doctors and offer many benefits that make them an attractive option for obtaining financing. By following the steps outlined in this article, you can get pre-approved for a physician loan and start your journey toward homeownership or practice ownership.