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You’ve heard about physician loans, and now you’ve decided to get one. Now what? We’ll walk you through every step of the buying process so you know what to expect and you can feel less anxious and more excited about getting your physician home loan!
Find a Mortgage Loan Officer
You can work with a direct lender like Physician Bank to avoid the hassle of third-party lenders. You will have your own designated physician home loan officer and access to your own Private Banker who will work with you from your loan application to closing and beyond.
Understand your Credit
Credit will be a key factor in determining your eligibility for a physician home loan and the rates you will be offered. The better your credit score, the more flexibility you will have.
Your previous credit performance, current debt levels, and payment history determine your credit score. If you have newly acquired debt, the type and frequency of your debt, and more, are considered.
Pay attention to your credit and follow best credit practices to keep your score as high as possible.
Prepare for the Costs of Homeownership
There are more costs outside of the monthly mortgage payment when it comes to home-buying that you might not expect:
- Upfront costs
- Keep in mind the initial costs, including your down payment, closing costs, and any reserves needed, in your checking or savings account.
- Budget for expenses
- Ongoing expenses you’ll acquire that may include maintenance/upkeep, property taxes, insurance, and homeowner association (HOA) fees (if applicable).
Get Pre-Approved
After talking to a Physician Bank loan specialist and applying for the loan, you’ll receive pre-approval, which provides an accurate pricing estimate based on your credit and financial situation. Getting preapproved will also give you more credibility with the seller because you’ll be financially prepared, which could improve your chances if you make an offer.
Be ready to provide some necessary documentation for this stage of the process. To process your preapproval, you will typically be asked for your official identification, address, employment history, pay stubs, tax return information, etc.
Select a Real-Estate Agent
It’s not necessary to work with a real estate agent, but it can make home shopping easier. An agent can access Multiple Listing Services (MLS) and provide professional insight on the housing market in your area.
Find a Home
Congrats, you’ve been preapproved! Now it’s time to find your home! In this part of the process, you’ll work with your realtor to find a home best suited for you.
Make a list of “non-negotiables” that will be deal-breakers in selecting a home. For example, you may be flexible about which city you choose, but it must fall within the school district you want for your kids. You could have a minimum number of bedrooms and bathrooms on your list. Your list can help you avoid rash decisions and forget key details about what you’re looking for.
Since you’re already preapproved, it will guide your budget and help narrow down home contenders. Be mindful of your budget, consider monthly payments, property taxes, and other expenses, and make sure you’re comfortable with it.
Make an Offer
Now that you’ve found a house, you’ll want to make an offer. You will work with your real estate agent to draft an offer letter for the seller.
The seller may accept, deny, request changes, or make a counteroffer. Your real estate agent will work with you to navigate the next steps.
Get a Home Inspection
Your offer on your dream home was approved! Now, before closing, you’ll want to get a home inspection from a professional home inspector. Although this step is not required, a home inspection can save you a lot of time and money.
Home inspections look for issues such as unforeseen safety concerns or damage that could cost thousands to repair. Commonly found issues include mold, pest infestations, backed-up sewage systems, damaged electrical wiring, and more.
The inspector will examine the exterior and interior of the home and note any safety issues and defects. It’s a good idea to be present during the inspection so you can see any issues for yourself and ask any questions you have for the inspector.
Choose whether to Close or Move on.
Now that your offer has been accepted and your home inspection has cleared major red flags, it is time to decide whether to close. If you close, you’ll become the legal owner of a home! If not, you can keep searching and go through the process until you find a home that suits you.
The closing process will involve reviewing the closing disclosure and other documents and selecting insurance plans.
After closing, you are officially a homeowner. Congratulations!
If you have any questions about the home-buying process, feel free to connect with one of our Physician Home Loan Originators.
Are you a physician in need of a loan? Physician Bank was made for you!
Start a conversation with us today.
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