Tips for a Simple, Hassle-Free Physician Mortgage Process
TLDR:
Getting a physician mortgage doesn’t have to be complicated. With the right preparation and a lender who understands doctors, you can avoid delays, confusion, and common pitfalls. This guide walks you through each step of the process—from pre-approval to closing—so you can confidently secure a home loan while staying focused on your career.
Why Physician Mortgages Are Different—and Better
Physician mortgage loans are specifically designed for doctors, dentists, and other healthcare professionals. These programs help borrowers qualify based on future income, high earning potential, and minimal cash reserves—even if they have a large amount of student loan debt.
If you’re a resident, fellow, or new attending, physician mortgage loans can help you:
- Buy a home with little or no down payment
- Avoid private mortgage insurance (PMI)
- Qualify using an employment contract
- Bypass traditional debt-to-income restrictions
But while these loans offer flexibility, the application and underwriting process still requires planning. That’s why having a clear roadmap can save you time, money, and stress.
Step 1: Choose the Right Lender
Not all banks offer physician mortgages—and among those that do, some are far more experienced with doctor-specific situations. It is also very important to note, local brokers DO NOT have access to a true physician mortgage. Be careful when review recommended options from realtors. They don’t always fully understand what you have access to.
Look for a lender that:
- Offers physician loan programs in your state
- Does Not try to offer FHA or Conventional options
- Works with residents, fellows, and early-career doctors
- Understands how to evaluate student loan repayment
- Accepts employment contracts up to 90 days before your start date
Choosing a lender with a track record of working with medical professionals makes a massive difference. Learn how to compare bankers who understand physician mortgages so you avoid delays later on.
Step 2: Get Pre-Approved Early
Don’t wait until you’ve found a house. Starting the mortgage process early—ideally 60–90 days before your move—gives you more control and flexibility.
What you’ll need:
- A copy of your offer letter or employment contract
- Proof of medical degree or license
- Basic income and asset documentation
- Estimates for down payment (even if it’s 0%) and closing costs
Getting pre-approved helps you understand how much home you can afford and positions you as a serious buyer in a competitive market.
Step 3: Know Your Budget
Physician loans may allow you to borrow more than conventional loans—but that doesn’t mean you should max out your approval amount.
Be sure to account for:
- Property taxes and insurance
- HOA fees
- Utilities and maintenance
- Student loan repayment (even if it’s not factored into DTI)
You can run the numbers using our physician mortgage calculator to estimate monthly payments based on your loan size and down payment.
Also consider reading how much house a physician can afford for more perspective.
Step 4: Streamline Your Documentation
One of the most common causes of delay is missing or inconsistent paperwork. Here’s what you can prepare in advance:
- Government-issued ID
- Last two months of bank statements
- Most recent pay stub or signed contract
- Proof of student loan status or deferment
- Explanation of any large bank deposits
- List of current debts and monthly payments
If you’re on an income-driven repayment plan, download a copy of your IDR documentation from Federal Student Aid to verify your actual payment amount.
Step 5: Understand Your Timeline
Physician mortgage approvals tend to move faster than conventional loans—but you still need to plan ahead.
Typical milestones:
- Pre-approval: 1–3 days
- Loan processing: 10–14 days
- Underwriting: 7–10 days
- Clear to close: 30 days total (average) (faster when you respond quickly)
Tip: If your start date is in the future, make sure your loan officer knows. Some lenders allow closings up to 90 days in advance, but documentation must be timed accordingly.
Step 6: Avoid These Common Mistakes
Even small errors can slow down your loan approval. Here’s what to watch out for:
❌ Applying for New Credit
Avoid opening new credit cards or car loans during the mortgage process. It can affect your credit score, DTI, and delay the process.
❌ Making Large Cash Deposits
If you deposit large amounts of money, you’ll need to document the source. Try to keep transfers clean and consistent.
❌ Changing Jobs Without Notifying the Lender
Your approval is based on your job status and contract. Any changes should be communicated immediately.
❌ Assuming All Lenders Handle Student Debt the Same Way
Some use actual IDR payments; others apply 1% of the total loan balance. Learn how different lenders approach DTI before submitting your application.
Step 7: Work With a Team That Supports You
You’re already managing a demanding career. Make sure your mortgage team works just as hard as you do.
Look for:
- Loan officers who are available after hours
- Teams that can communicate with your real estate agent
- A dedicated processor who keeps you updated
FAQs: Physician Mortgage Process
How long does the process take?
Most physician loans close in 30–35 days, sometimes faster. Pre-approval can happen in as little as 24 hours.
Do I need to show pay stubs?
Not if you’re using a contract-based loan. Just be sure your contract includes start date, salary, and contingencies.
Can I get a loan while in residency?
Yes—many physician loan programs are designed for residents and fellows, even if you have no savings or current income.
Will my student loans disqualify me?
Not usually. Physician lenders understand student debt and often use your actual payment—not the full balance.
Final Thoughts
A physician mortgage can be a powerful financial tool—but only if you’re organized and working with the right lender.
To keep the process simple:
- Start early with pre-approval
- Gather documents ahead of time
- Work with a banker who knows doctor loans
- Use your contract strategically
- Avoid financial changes mid-process
Want to learn more about low down payment options? Explore our ranking of mortgage programs with minimal upfront costs and find the plan that fits your goals.
