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Question for the Money Doctors

Question submitted on Feb 5, 2012.

Question

Finishing up physician fellowship soon and looking to buy land and then build a home...$750-900,000 range for the total loan. In Florida...do you have ideas/suggestions/experience with physician loans? I am thinking of going for a Fifth Third offer, I''ve ran into their offer on www.dochero.com. I appreciate any kind of help and advice.

Thank you in advance.

Answer

Assuming your future income will support a loan of that size and you will be able to verify that income, I would be inclined to shop at your local bank or credit union to compare their offers to the Fifth Third offer.  While Fifth Third is obviously marketing and branding their specialty lending area with doctors, they may not necessarily offer the best pricing.  You will also want to discuss how their construction loan options work.  Lenders typically want you to buy the land upfront with cash and then will lend based on the loan to value % for the actual building and appraisal.

The mortgage market, especially one of that size, is very competitive so make sure your cost of money and closing costs are reasonable after you have comparisons from several lenders.  Even 1/8% difference can make a significant dent in a total interest paid on that sized loan, assuming equivalent closing expenses.


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