A doctor loan is essentially a mortgage loan disbursed to a medical professional, usually without the clauses of any down payment. All the borrowers who usually make a down payment of less than 20% on other loan types are often required to pay private mortgage insurance (PMI). A doctor loan lets you skip both a down payment and private mortgage insurance if you’re a medical professional.
A doctors’ loan accounts for all of these issues and also makes special allowances for the unique challenges faced by a healthcare professional. Taking on a mortgage as a young physician with huge debt and just starting out in their career may seem unusual with the repayment hanging, but they keep in mind borrowers’ career paths when making lending decisions.
While doctors lack adequate income early on due to medical school debt, they are more likely to have their salaries increased in the future and may easily pay off the loan in due time, lowering the chances of becoming a defaulter. Taking this into consideration, lenders are more willing to disburse doctor loans to applicants, even without an initial promising income flow and salary profile.
An applicant’s age, qualifications, experience, annual income, profit, and ability to repay the loan will be considered when the bank evaluates the amount of the loan. Applicants who meet these criteria will be able to apply via phone, SMS, email, or by visiting a branch of the bank they choose. By filling in an online application form, you can apply for a doctor loan more easily. Following that, a representative contacts you and helps you through the following steps till the loan amount is ultimately disbursed.
Here is a 5-step guide to applying for a doctor loan.
1. Choosing the correct lender:
If you want to pick a loan that you can afford, repay in due time with interest, and have excellent customer service- you need to be careful while choosing a lender. When it comes to selecting a lender, you need to pick the right one that fulfils your demands and situations.
However, it is a good idea to review different lenders and their interest rates before applying for a loan. Not only does this help to choose the right lender or bank, but it also helps you to ensure that your monthly expenditures remain very minimal. The lower the debt, the higher the chances of getting your doctor loan approved.
2. Check your qualifications:
The second step is to ensure you meet the loan’s eligibility requirements after you’ve selected a lender. Loans for doctors are usually approved based on your academic qualifications and work experience, so they are easily accessible.
You have a better chance of approval for your loan if you meet the criteria set by the lender. As well as saving time, this method will help you stay organized. If your application fails to meet the criteria, the bank will most likely reject it during the verification process. Additionally, you may receive a loan with a lesser value if you do not meet every criterion.
3. Gather the documents required:
Get all the necessary documents to get your loan approved quickly. Until all of your documentation has been verified and approved, your loan application won’t be considered valid or approved.
You will not be able to prove your identity, financial situation, and intent to take on the loan without the proper loan documents. Your loan application will be rejected if the application appears to be a risky transaction.
Documents proving your eligibility will include your medical registration certificate, your identification documents and bank statements, and your KYC documents. Additionally, if you want to apply for a doctor loan that is secured, you will have to show your property papers as well.
4. Select the mode of application:
In some cases, the lender may give you the option to choose between online and offline modes of application. Depending on your needs, choose the mode that is right for you. It is easier to apply for a loan online. This way, you don’t have to travel or take time out of your day to do so. The form can be filled out online with the submission of appropriate documents. Funds will be deposited into your account after approval, verification, and disbursement. However, f you do not know how to use the internet or prefer a more personal interaction for a detailed procedure, you can always apply offline.
Whether you fill-up the form online or offline, you will need to submit details such as your name, date of birth, educational qualifications, work experience, amount of money you are applying for, and much more. If you are applying online, make sure you have all the relevant information and documents available. Once the application and supporting documents are verified, the funds will be deposited directly to your bank account, so you won’t have to collect or cash a check.
Again, the policy eligibility criteria asked by each bank are different, but the main procedure remains more or less the same. So, do your research and choose wisely.