While other professions enjoy their perks, being a dentist sounds too dull and hectic. Imagine driving to the clinic every day, giving numerous kids their regular checkups, fixing braces and performing root canals. Filling up the paperwork for insurance companies and taking care of the clinic’s maintenance only adds to the workload of a professional. When Sunday arrives, and you hope that you will have a quiet day with your family, some errant emergency call from a patient or the clinic disrupts the pleasant flow of the day.
A dentist’s life is no less busy than that of a physician, although most people tend to believe otherwise. There is enough reason for a dentist to crave a break from the daily paper filing and number crunching. However, things take a turn for the worse, when their clinics require renovation or their home needs repair. Sometimes, dentists move to new locations and open clinics in new localities to attract a new clientele. Moves like these cost significantly, and the conventional loan is not enough to cover these expenses. Additionally, conventional loans take longer to process.
Why are dentist loans necessary today?
The life of a medical professional has become much more comfortable with the advent of professional loans for dentists. A dentist mortgage loan is one that has helped hundreds of dental professionals find a new home, and invest in real estate. The average new dentist makes about $115,000 per year. That would have made them the perfect candidate for fresh loans if they did not have the burden of student loans. The student loan burden of a new dentist is a lot more significant than that of an arts major or history scholar. The average dentist graduates with the onus of about $241,000 and that makes it almost impossible to convince a bank or credit union of their ability to pay back a home loan.
How are dentist loans different from conventional lines of credit?
Dentists are high-risk candidates since they have a higher debt-to-income ratio at the beginning of their career. Several new mortgage companies are now willing to exclusively help the dentists with amicable interest rates, qualification criteria, and better loan amounts. They are entirely different from the standard home loans in multiple ways.
- Dentist mortgage loans do not require any down payment. If you are a very high-risk candidate or if you need the money within short notice, you might have to pay less than 10% of the amount as down payment.
- You should be able to bypass the private mortgage rate entirely. Regular borrowers require private mortgage insurance (PMI) when they put down less than 20% of the total worth of their home.
- If you go to the right lenders, they will look beyond the debt-to-income ratio before granting your loan. It is true that your DTI will determine your worthiness as a borrower, but the lender will not include your student loan amount while calculating it.
Physician home loans and dentist mortgage loans sound great. However, you should always stop, take a step back and consider if it is the best offer you are getting. Do not shy away from approaching multiple lending companies before you make the final decision.