Investing in a home is one of the most important events in a person’s life. It brings with it several difficulties but on the other hand, it brings a sense of security as well. Buying a home is by no means an easy feat.
There are countless factors to be considered before taking this step. These factors include a mortgage, insurance, capital, etc. Moreover, for dentists and physicians, in particular, this process is a little different. This is because their mortgages are different from that of persons employed in other fields. In this article, we’ll look at the top home-buying tips for dentists and physicians.
Do Your Research
Doing your research is one of the most important home-buying tips. Usually, dental practices don’t fail, but when they do, they fail catastrophically. One wrong decision can turn your whole life upside down. Before buying a home, ensure that you’ve understood all the factors. Obtain knowledge about when and where to buy and get yourself acquainted with all the difficulties you may have to face in the future.
You need to think about whether you want to buy an existing practice or start fresh. Building a professional practice from scratch is not everybody’s cup of tea. It requires dedication and inspiration to go through difficult phases. Make sure you have thoroughly studied all the options. Get information about mortgage, and insurance and talk to experts or current practice owners so you could know what lies ahead because this too comes into play when considering becoming a homeowner.
Valuation of the Property
Once you’ve done your research about the selections of your loan, the location of the property, and mortgage plans, then it’s time to check the property’s value. The valuation process provides the basis for most of the negotiations and ultimately the agreed purchase price. All the ownership documentation and property’s security clearance along with its previous utilities, all fall under the valuation of the property.
The mortgage is a crucial factor in buying a new home. No doubt, physicians have a great income but a graduate who just finished his degree is most probably already in debt. Students often accumulate immense debt in order to fund their education and after graduation, no bank is willing to risk that much money on a fresh graduate. This makes it quite difficult to buy a home and start practice.
It also brings up the idea of buying an existing practice. Moreover, not to put you in a pickle but a mortgage alone can make up a huge chunk of your income. There are a couple of factors that are taken into account to determine whether you qualify for a mortgage or not. Most banks don’t give home loans to fresh graduates or dentists. Fortunately, there are many banks out there that provide “Dentist Physician Mortgage”. These are special loans provided to physicians. These loans differ from normal loans to a great degree.
Perks of Physician Mortgage Loans
The best part about these mortgage loans is that they require little-to-no down payment. It varies from lender to lender, but it’s usually less than 10%. Also, these loans don’t require any private mortgage insurance. People who pay less than 20% as a down payment are required to buy insurance but these loans carry no such requirement. The best part about such loans is that they look beyond the debt-to-Income (DTI) ratio.
They do have a downside, however. Some of them are offered at a high-interest rate while others require a high credit score. Study them well before coming to a decision. Banks are now expanding this domain as well and adding more programs.
Dentists and physicians spend years of their life becoming certified. After their certification, some tend to start a new practice while others wish to join an existing one. Starting a new practice gives you the opportunity to think about buying a home which is one of the major events in a person’s life. Buying a home for dentists and physicians can be quite overwhelming at times because most of them are already in debt and trying to ask for a loan doesn’t seem to work.
Fortunately, many banks out there now offer special loans to certain professions. Ensure you choose the best mortgage plan. Buying an existing practice does have a huge advantage: it’s already generating income which can come in handy right after you make the payment. Try to access a physician’s mortgage loan rather than finding private lenders because they are much more credible and reliable.