The physician mortgage process is straightforward, especially for doctors working in a clinic, group practice, or hospital setting. Those who have their own practices and are self-employed face a few additional obstacles when applying for a mortgage. Lenders investigate medical practices just like any other small business, considering the stability and viability of the business itself. There are several features they are looking for, and tips to making this somewhat investigative procedure easier. Let’s look at some of the most crucial conditions lenders want to see during the self-employer mortgage application process:

Consistent Loan Repayment. Banks want proof that you pay your debts regularly, both business and personal expenses. This shows responsibility and assures them that you are a reliable borrower.

Active Business. Lenders want to see that you are actively supporting your business financially, bringing in income and maintaining—or even expanding—your patient services. A strong business means a reliable stream of income.

Steady Employment/Work. Lenders want to know that you have been actively working as a physician for a while, and don’t have any gaps in your employment. If you have been self-employed for less than 2 years, most banks will accept proof of previous employment in your industry.

Credit Score. As we have mentioned in an earlier article, your credit score should be protected. Like your reputation, it represents your historical ability to repay debts, and is viewed on its own, separate from your actual income or debts.

Many lenders offer mortgage lending to the average home buyer. With standardized financial requirements, they have an established process dictating how their specific institution handles mortgage lending. But some lenders not only cater to self-employed home buyers, but focus even more specifically on physicians, both employed both others and self-employed. Founded in 1856, state chartered NBT Bank began offering banking services to Norwich, New York, and surrounding communities. Several name changes, acquisitions, and mergers over the years helped NBT grow into a leading banking institution in the Northeast and mid-Atlantic regions. Like other lenders offering mortgage products to qualifying doctors, NBT Bank has loan officers experienced in physician lending, and can provide guidance to applicants as they navigate the process of obtaining a mortgage. More details about the NBT Bank Physician Mortgage Program include:

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• Maine
• Massachusetts
• New Hampshire
• New York
• Pennsylvania
• Vermont