Even when your medical practice is well-established, availing a loan is often a prerequisite to achieving big-ticket goals like buying a home. While you may consider applying for a regular home loan to fund your purchase, it may not meet your unique needs. So, a better alternative is a customised home loan for doctors as it can help you achieve your dream swiftly.
To secure the right home loan for doctors, consider the following tips.
Meet your lender’s eligibility criteria
In order to avail a home loan for doctors, you have to meet certain eligibility criteria laid out by the lender. Though your busy schedule may tempt you to apply for a loan without checking for such criteria, refrain from doing so. Applying without checking puts you at risk of facing rejection. A string of rejections can in turn damage your credit score, not to mention postpone your dream of owning a home. So, work towards meeting the eligibility criteria before applying for a home loan and look for lenders who have minimal requirements. Bajaj Finserv’s Home Loan for Doctors, for example, has minimal eligibility criteria and grants up to Rs.2 crore to buy a home.
Produce the right documentation
In addition to meeting the eligibility criteria, lenders also require you to submit certain documents relating to your age, income and medical practice. They attest to your eligibility and so, producing the right ones in one go is extremely important. This not only shows that you are a responsible applicant but also accelerates the application process and gives you quick access to funds. So, take note of your lender’s documentation requirements and produce them along with a duly filled application form.
Check the terms of down payment
When you apply for a home loan, lenders fund only up to a certain percentage of your property’s value. The remaining amount is called the down payment and has to be paid by you in lump sum. Since this amount is anywhere from 10–25% of the property’s value, you may have to pay several lakhs up front. To ease the financial stress look for an option where:
- The lender sanctions a higher loan amount
- The lender allows you to make the down payment in instalments
- The lender offers a zero-down payment home loan
Note the quantum of down payment has a direct bearing on your loan amount and therefore your EMIs. This means that, the higher the down payment, the lower the loan amount and EMIs will be, and vice versa.
Check for a top-up loan option
Emergencies can drain your finances and have no regard for your existing financial obligations. At such times you may require additional finance, and a top-up loan on your home loan is a great way to secure it. These loans offered at competitive interest rates and you don’t have to go through the entire application process of applying for a fresh loan. A low interest rate and a lengthy tenor make it all the more appealing. So be sure to apply with a lender that offers a top-up loan so that you can have a financial cushion in case you ever need it.
Check for a pre-approved offer
To facilitate seamless application for this kind of healthcare finance designed for medical professionals, lenders extend pre-approved offers to you from time to time. You may find these stacked in your email inbox or SMS folder and assume them to be marketing material. However, these are genuine offers that can get you instant financing for your home.
Armed with these tips, you’ll be able to select the right home loan for your needs in no time at all.