Physicians' Mortgage - Understanding the Basics

Physicians mortgage loan are an excellent source of long term financial security for physicians. Like most types of mortgages, it is important to do your research before agreeing to a loan. You should be aware of the fees and interest rates that will be charged to you. Doing your homework will help ensure you get the best deal possible for your needs.

The primary function of the physician's mortgage loan is to secure your future. A physician's mortgage loan is the largest line of credit available to physicians. The amount is based on many factors such as your annual income, specialty, experience and geographic location. Because this is the biggest financial transaction you will ever make, knowing what you are getting into can help you make the best decision possible.

Before you sign up for a physician loan, make sure to investigate all aspects of the institution that will be giving you the funds. There may be hidden fees or conditions that will affect your loan repayment. Make sure they are clearly stated in the contract before you accept the loan. Don't select the first institution that meets your criteria - several opportunities exist for you to save money. Use the internet to perform your loan research and see how much different lenders will charge.

One of the advantages to accepting a physician's mortgage loan is the opportunity to secure financing quickly. Unlike refinancing, a physicians mortgage can be done in one day. This is helpful when a physicians current financial obligations are difficult to meet. If you have a large balance on your health insurance policy, you may want to consider looking into lowering the coverage. This will make your monthly payment and the interest rate less. Many mortgage lenders are happy to adjust the interest rate on this type of loan to keep the premium low.

Another advantage to applying for a mortgage through a mortgage broker is that they are typically knowledgeable about the mortgage market. Although a physician may not be an expert in the area of mortgages, most brokers understand how to speak with banks and mortgage companies. A mortgage broker can negotiate a lower interest rate for you. The disadvantage of this is that you may be required to pay a portion of the commission.

The key to a physician's mortgage is to find a mortgage broker who understands your needs and your situation. Do some homework before beginning your search. Look for mortgage brokers who are familiar with your situation. Find one that you are comfortable working with. When you find the broker you are most comfortable with, shop around for the best deal. Be aware of all fees and payments associated with your physician's mortgage loan.