Financial management and savings are never easy for medical students! Today, the current graduates of any professional medical school are caught up in a unique situation. Generally, they incur a significant debt amount with very fewer savings. And this indeed is not a safe place to purchase a new house. Most people with low savings and increased debt amount will not have any luck with the conventional mortgage loans.
Most medical graduates are entitled to a favorable, high income! So today you have several banks that provide veterinarian home loans and other types of physician mortgage loans. Majority of these loans gets specially designed for medical students. However, there are many other health professionals, for instance, a veterinarian or dentists, who can make the most of these loans as well. As you start earning and are planning your financial decisions and management, you can seek this loan if you need it.
Is a veterinarian home loan a good idea?
Today, most medical students and practitioners and even the veterinarians have opted in for physician home loans. Some of the principal and positive aspects of this loan are as follows:
- It needs very less to zero down payments
- Veterinarians don’t need to avail a PMI (Private Mortgage Insurance) for seeking this loan
- It will not matter in your student loan debt, that is generally very high for medical professionals
- The loan accepts a contract or a job offer as a proof that you are generating an income on a monthly basis
You should delve deep into the subject, before applying for the veterinarian home loans. Generally, the lenders are searching for users who are known for making timely payment. They want candidates and medical practitioners of multiple fields who maintain a favorable bond with the bank for several years in the future. Medical candidates and professionals have the scope to have a high income. Hence, most banks and physician banks prefer to have them as clients for the long run. It is because of this they are all set to provide premium checking accounts along with their preferred interest rates for medical students and physicians who have said yes to a mortgage.
Making a veterinarian work for you
You might want to make use of a veterinarian and physician home loan as you tried to purchase a house. And for that, you were unable to come up with a 20% down payment that any traditional loan sanctions. When you don’t have any access to about 20% of the down payment, you will have to make payments for the PMI. And this will be an extra monthly payment that you make and can get avoided with better planning.
You could easily look for a bank that provides physician loans, to the veterinarians and gets all the formalities done. As you research, you might come across the option for ARM (Adjustable Rate Mortgage). The physician or veterinarian loans might have an increased interest rate than the traditional ones. However, today you have access to banks and service providers that make the terms and conditions of this loan easy and seamless for you. It is essential to join hands with the apt service provider, to make the veterinarian loan work in your favor.
Guest post courtesy of Sujain Thomas