As a junior doctor, whether you are in the US or the UK, you work hard and deserve to have a stable place to call home.
But as a junior doctor, this is not as easy as it seems, as many mortgage providers may be unwilling to provide you with a mortgage due to fluctuating hours or the range of hospitals that you work in.
This can make a successful mortgage application harder, but there is a range of lenders that will be able to help you secure a mortgage, given your unique employment circumstances.
Of course, there are still some rules relating to applying for a doctor’s mortgage. So, what are some of the things you need to consider when beginning your mortgage application as a doctor?
Credit Score
Not a new thing, but when it comes to applying for a mortgage, irrespective of your role, you will need to have a good credit score.
An acceptable credit score is generally considered to be above 700 and is determined by credit reporting agencies based on your credit history.
If you don’t have one yet, or it could require a bit of a dust-up, there are many ways you can build up your credit score, such as paying bills on time, limiting the number of credit card applications that you make, and keeping credit card balances low. You should also aim to maintain consistent employment and try to stay at the same address for as long as you can.
The credit score needed to apply for a mortgage as a junior doctor may vary, so for more information, head to doctorsmortgagesonline.co.uk.
Income
As a junior doctor, your income may fluctuate based on where you are working and the hours that you work.
The income required to apply for a mortgage in the US can vary depending on the lender, the type of loan, and the size of the down payment. However, generally speaking, you will need to have a stable income that can support the monthly mortgage payments.
This is why it is important to approach a specialized lender when you are a junior doctor, as they will be more flexible in their approach to your income and mortgage repayments.
Debt-to-Income Ratio
As a junior doctor, you will likely have some debt after completing med school, and this will be considered by mortgage lenders with the aptly named debt-to-income ratio. A debt-to-income (DTI) ratio is a financial metric used to assess a borrower’s ability to repay their debts. A DTI is calculated by dividing the total amount of a borrower’s monthly debt payments by their gross monthly income. Lenders use this ratio to determine a borrower’s creditworthiness and to assess their risk of defaulting on a loan. A lower DTI ratio indicates that a borrower has a lower risk of default, while a higher ratio indicates a higher risk. Generally, a DTI ratio of 36% or less is considered to be a healthy level, but this can vary depending on the lender’s policies.
So, find out what your DTI is and look around for a suitable mortgage lender.
