[FPMD: I’ve talked about Doctor Loans previously on FPMD. This guest post is provided by Leslie Winters of DoctorLoanPrograms.com, a comparison site for doctor loan providers. We have no financial relationship.]
When it comes to physician mortgages (“Doctor Loans”), there are so many options out there and it’s hard to know who you can trust. To help decide which lender is right for you, here are a few things in mind when you talk to the lenders:
How responsive are they and how well do they communicate with you?
Once you put in the inquiry you should get a prompt response back from the lender. While these are busy professionals, they are also aware of how busy your schedule is. A slight delay is understandable but you should generally hear back within 1-3 business days. If you don’t, you rightfully may start to wonder how difficult it would be to reach them later in the process. Everyone’s personalities are different; the key is finding the personality that fits with yours. So keep this in mind when you’re talking to a loan officer: do they answer questions? Offer suggestions? Listen well?
The products they offer are similar but there are important differences to note.
Here are some basics to consider:
- Loan to value- do they offer 95-100% financing and to what loan amount?
- Product terms- do they have fixed rate options and/or long term adjustable-rate mortgages (ARM)?
- Bank fees- one of the few closing costs that are not estimated are the bank fees, how much are they? They may go by other names - application fee, underwriting fee, processing fee etc. Also ask about origination fee or points to be sure you are comparing quotes accurately.
- Is there a relationship required with the bank- some will require a checking account or some other type of deposit account to be set up in order to qualify you for the best rate. Ask about direct deposit requirements, drafting of the mortgage payment, whether there is a minimum balance required?
[FPMD: I can vouch to the last point from my experience with a doctor loan lender, I had to open 3 banking products (savings, checkings and a credit card) in order to get the best mortgage APR.]
It’s also a good idea to get a feel for the loan officer’s experience and process.
Do they have a team? Who does what on the team and what can you expect going forward from the teammates. How long have they been in the industry? How long have they worked with their current bank? Will they be your point of contact at the bank after closing? Do they have a pre-approval process and how long does it take?
Purchasing a new home is a complex and frequently frustrating process. I hope this gives you a few basic tools when comparing physician loan lenders.
Guest author Leslie Winters is the owner of DoctorLoanPrograms.com, a comparison site for doctor loan providers. I attempted to purchase a house in 2015 under the doctor loan program and I actually found my loan provider thru Doctor Loan Programs. While that purchase eventually fell thru, I did appreciate how easy it was for me to find a doctor loan provider thru the site.