The Indicators

Mortgage Application: 3 Reasons Denial is Still Possible for Doctors

Mortgage Application for DoctorsIt's no secret that doctors are among the most favoured mortgage borrowers. Lenders love that these medical professionals have high income and are less likely to miss repayments. As a result, the medico sector enjoys exclusive interest discounts, waived Lenders’ Mortgage Insurance, or both.

Despite this, it doesn’t mean that you’re 100% assured of a home loan. MediPro Capital Finance says that there may be mortgages for medical professionals, but you’re still a few steps away from home ownership. If you share any of these examples, securing a discounted interest rate may be the least of your worries:

You Lack Enough Genuine Savings

You may borrow more than 90% of the property’s value with no LMI, but your profession doesn’t excuse you from having legitimate cash reserves in your bank account. If your savings comes from sources your lender doesn’t consider reliable, you may not use them as a deposit.

As a general rule, non-genuine savings are cash reserves coming from gifts from family and friends, inheritances, windfall gains and sale proceeds of a non-investment asset, like a motor vehicle.

You Have Weak Employment History

Doctors may have long-term career prospects, but you must show proof that you have stable work before applying. In other words, you should at least prove yourself to the world. You must be a member of at least one recognisable medical association. 

Without making a name for yourself prior to a mortgage application, your licence might not suffice to convince your lender to finance your purpose, let alone give you discounts.

You Want a Modular Home

Compared to traditional properties, built or not, it’s difficult to seek financing for modular housing. Prefab may be a hot trend in real estate, but most mortgage providers are still rather conservative toward lending on it.

While you might eventually find a willing lender, expect more hurdles to overcome. Lack of security over your not-yet-built modular property and the lender’s insufficient understanding of how modular housing works are two of the many challenges you might face.

Being a doctor eases the process of a mortgage application, but you’re not yet in the clear. You must still satisfy the unique criteria of your lender to get the funds your need for your purchase.