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Physician Mortgage Brokers: An Expert in Your Corner
Physicians are busy professionals, and depending on where you practice medicine, you may work odd hours. This makes finding a home and applying for a mortgage a challenge. When looking for the best rates and terms, any expert assistance can truly make a difference to a doctor’s home buying success and sanity. Enter a mortgage broker. Working together with your real estate agent, lenders, and other financial professionals, mortgage brokers bridge the gap and simplify the home buying process. A licensed and regulated financial professional, a mortgage broker bridges the gap between borrower and lender, taking some of the legwork off of your plate; and unless you have a close friend in the banking business, a mortgage broker can be the answer to your prayers when it comes to finding the best mortgage for the unique financial needs of a doctor. However, they don’t work for free, so it’s crucial that you understand what they can and can’t do to help you make the best choice in mortgage companies. So, let’s compare the pros and cons of using a mortgage broker.
Saves you time. This is often the first benefit doctors hear about in hiring a mortgage broker. Your broker searches for the best mortgage rates, narrowing down those which will save you the most money over the life of your mortgage.
Knows the best lenders. With years of experience and a slate of lenders they have worked with in the past, brokers can sort through the most attractive mortgage programs. They may be able to offer little-known specialized loan programs. In addition, the relationships they have built with lenders means that you have an advantage in qualifying terms—they can lean on the lender to consider you even if you don’t fit every requirement.
Help you prepare a competitive loan application. Because doctors often have complicated finances, a mortgage broker can guide you through the application process, ensuring you provide the information lenders are looking for.
Speeds up the closing process. With so many people involved in the home buying and mortgage process, it pays to have dedicated support to keep all the gears running. From ensuring all financial documents are collected to keeping underwriting and escrow agents on track, your mortgage broker will make sure your home buying experience is completed as quickly as possible.
Advocates for you. Since a mortgage broker only gets paid when you successfully close on your property, you can rest assured that he or she is working for your best interest. Your broker can provide an initial home buying budget based on your financials, can fill out dozens of loan applications, negotiate for potential fee reductions, and provide expert advice in understanding the terms offered in mortgages, allowing you to focus on your job…being a doctor!
They aren’t free. Since they are independent from the lender you choose, their services are an additional cost. They are often paid by the lender (fees range from ½% to nearly 3% of the loan amount), but you can also pay the broker yourself outside of the closing. This borrower-paid compensation may even be cheaper. Be sure you ask up front what the broker’s fees are—the competitiveness and average home prices in your market can affect the “market price” of mortgage broker service.
They work best for buyers with complicated financials. Brokers know the ins and outs of the mortgage industry. For this reason, they can be a real asset to borrowers with extenuating circumstances, like high debt, low down payments, self-employed, and residents/fellows just entering the workforce.
Brokers may have “buddies” in the lending industry. Because they have years of experience in the mortgage business, some mortgage brokers may be biased towards specific lenders. This is more prevalent with lender-paid brokers. It is beneficial to have a general idea of what mortgage rates and terms are before you choose a broker.
The drive to close the deal can affect their customer service. Since mortgage brokers aren’t paid until you close on your property, some unscrupulous brokers may try to rush the process. Those brokers are only looking to get as many loans closed as possible.
To find the right mortgage broker, perform the same due diligence you would in hiring any other professional (contractor, plumber, mechanic, doctor). Ask colleagues, read reviews, and ensure they are licensed in your state.
Purchasing a home is a huge task and finding the right physician mortgage lender is a large portion of this complicated process. In our series, we introduce companies who either have specialized doctor mortgage programs or offer competitive rates and a full slate of financial products for medical professionals. Although it doesn’t have a physician-specific mortgage program, Citibank (a division of Citigroup) is a large financial institution offering a wide variety of services for medical professionals, including home mortgages. Financial giant Citibank began in 1812 as City Bank of New York, mainly as a treasury for a few of the early bank presidents’ own businesses. It was an active participant in U.S. economic history, having financed war bonds for the War of 1812, underwriting the Union during the American Civil War, and accepting a multi-million dollar deposit to be given to Spain for the purchase of the Philippines. After joining the U.S. national baking system, it grew quickly, becoming the country’s largest banks in 1894. It later helped to finance the Panama Canal and was the first U.S. bank to have $1 billion in assets.
Over the years what is now known as Citibank has exploded in size, number of services, and technological tools. Although its history is not without controversies, Citibank stands as a giant in the financial industry, with over 200 million customer accounts, and through its subsidiary, CitiMortgage, serves a wide variety of mortgage options.
Citibank (CitiMortgage) Mortgages
Minimum Credit Score
Loan Amounts For Residents & Fellows
Loan Amounts For Practicing Physicians
With a strong history and branches located across the U.S. and internationally, you may like the idea of working with a banking giant. There are benefits to obtaining a mortgage with Citibank, especially if you are an existing customer. Further, Citibank has earned awards and recognition for environmental and social service, including a Top 50 Companies in the U.S. by LinkedIn for the 10 th year, earning a spot on the Top U.S. Affordable Housing Lender, and ranking 7 th of 300 financial services companies in Newsweek’s American’s Most Responsible Companies. To find out more about Citibank and its mortgage programs, visit the Citibank website. Read more of our series on physicians mortgage providers here.