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The BankMD Mortgage Process
What is a Physician Mortgage?
Our Physician Mortgage Program is designed to make homeownership easy and affordable.
What does it include?
The basics of the program include up to 100% financing with no mortgage insurance required. That’s right no PMI required! Additionally, there is the exclusion of student loan debt payments from the credit approval process, meaning your student loan status can’t hurt your chances. Also, sellers are able to give 6% of the value of the home for the buyer’s prepaids and closing costs. There are no limits on any gift funds that can be received and you can use future income in the qualification process, all without having any cash reserves.
It’s as easy as filling out a simple form online, after which you’ll receive a prequalification letter or email. This letter is going to tell you exactly how much of a loan you’re approved for. At this point, you are not committed to borrowing any money, it’s a simple letter saying how much you can borrow if you’d like to. Once you have this, you’ll upload all of the pertinent documents to our secure online portal. Prequalification is critical because it sets an upper limit on what you can borrow, therefore giving you a realistic idea of how much you can afford. With our simple online forms, you will know if you’re qualified and for how much within minutes, all backed by a secure, trustworthy and accurate system. This confidence translates into the decision-making process, allowing you to make the best decision possible.
BankMD will send you an email with the follow-up instructions. You’ll find a home you like, make an offer and wait for it to be accepted, this can take a few months, so don’t sweat if you don’t find a house immediately. Once you do, email a signed purchase agreement to BankMD and they will review and confirm the agreement, as well as send a loan estimate and other disclosures securely and electronically. Once everything has been reviewed, you need to e-sign these documents immediately to speed the process along. Again, none of this commits you to the loan. There are ample opportunities to back out of the deal before committing to the large sum of money being borrowed.
Before the full approval, BankMD will need to see evidence that you’ve been accepted into a residency program and executed, a fancy word for signed, an employment agreement with your residency program. Also, BankMD will need all bank statements for the prior two months. BankMD will need the source of your down payment and the source of gifted funds. Once this is complete, BankMD will assist you in finding the most appropriate type of home loan for you.
Once you’ve completed the last three steps, the final approval process will begin. BankMD will verify your credit reports, financial status, debt-to-income ratios, balances on all account statements, Residential Enrollment by Verbal Verification of Employment or Written Verification of employment (VOE) and Application accuracy, contract, sources of all funds for the down payment, and escrow, and property appraisal. With all of these items being verified, an underwriter will then review the loan and submit for final approval. Again, you are still not committed to the loan. Once all of these steps have been completed the loan will be submitted for full approval, and a closing date will be set. Before the closing date, you’ll receive the Closing Disclosure (CD) which provides an estimate of the closing costs. Once you open the Closing Disclosure, you will have a THREE DAY period in which you can back out of the deal. The loan cannot close until the three days expire. This is the final point in which you are not committed to borrowing the funds. During those three days, BankMD closers and the title company will fine-tune the closing statement, ensuring everything is accurate and up to date. You will then receive the final settlement statement (CD) breaking down the closing costs and the amount of money you need to be prepared to pay at the closing. Once the closing is complete, you will receive the title to your new home and start making payments soon after.