Physician Mortgage Loans - 3 Tips For Saving Money

Private physician mortgage loans are becoming more popular with physicians buying property. In fact, this type of real estate investment has been increasing for several years. The reasoning behind this is that real estate prices have risen over the past few years while traditional mortgages haven't. This combination leaves the physician buying property with some good potential for profit.

There are several ways to qualify for physician mortgage loans. A few of these criteria are: cash flow, credit score, employment history, etc. Of course, if you are a physician with great credentials it doesn't hurt your chances. It just makes it that much easier to get approved for a physician loan. Here are a few steps to help you get started:

Applying online is one of the most convenient ways to apply for physician mortgage loans. If you are a physician looking to borrow money for buying new real estate properties or for debt consolidation, then applying online may be a great option for you. You can complete your application in minutes and sometimes even seconds. Some lenders will also give you a free no obligation quote so you can get a better idea of the interest rate you'll qualify for.

You should also look at getting pre-qualified from other financial institutions. In fact, you should contact several different banks and see what they have to offer. You can ask if you can be quoted on a fixed interest rate, a variable rate or a monthly payment. Once you have narrowed down the loans you're interested in, you can begin the application process.

Another way to save money when getting physician mortgage loans is to ask about a co-borrower. Typically, a co-borrower is someone with a similar credit rating to you. A co-borrower can help reduce the interest rate on the loan and even be legally responsible if the loan goes into default. Although it isn't recommended, you can have several co-borrowers to help spread the risk. The downside is that you'll have to share the interest responsibility.

One last way to save money when applying for physician mortgage loans is to negotiate the terms. While the lender will set the interest rate, they will often negotiate the terms of the loan. You can expect them to charge a slightly higher interest rate since they will be taking less risk by loaning you the money. In some cases, they may even be willing to waive certain fees or points. By negotiating the terms of your loan, you'll end up saving hundreds of dollars over the interest of the loan.