Put lenders to the test

One of the biggest disadvantages of many loans is that they can be difficult to obtain unless you have valuable collateral. While some lenders require it, others don’t, so you can protect what you own. You’ve worked incredibly hard to acquire your assets – are you really willing to risk them?
Will this loan show
on my credit report
Applying for a loan can put your credit rating at risk. During the application process, some lenders perform a hard credit draw, which provides a full report of your credit history and credit score. This type of investigation can hurt your credit score and stay on your report for up to two years. Other lenders perform gentle credit extraction, which does not affect your credit score and does not end up on your report.
What type of rate do you offer
The loans will have a fixed rate or a variable rate. This determines whether the rate will remain constant throughout its term or fluctuate based on market conditions. With a fixed rate, you’ll always know what your interest charges will be, making your payments and monthly budget more predictable.
How quickly do you make approval decisions
Establishing the approval schedule can help you predict whether the process will take days, weeks, or months. This is essential if you are in urgent need of funds.
Do you have experience working with others in my industry
Doctors have unique needs, so partner with an experienced lender
in industry matters. Some lenders have a process that does not differentiate a doctor from any other borrower, while others specialize in working with doctors or with clients with similar profiles.
Every lender or loan is different. Understanding the basics can help you confidently assess loan quality and the overall experience. By examining a lender’s expectations for timelines, deliverables, and expertise, you will decrease the risk of surprises.
How fast do you fund after approval
Some lenders can take weeks or months to deposit funds into your account after loan approval, while others can do so within days. If you need the funds before a certain time, make sure the lender’s schedule matches yours.
How long do i haveto repay what I owe
The length of your loan dictates how much you will pay each month. Longer terms usually mean your monthly payment will be lower and more manageable. If you need more monthly cash, look for a loan with longer repayment terms.
What is your application process
As a doctor, you deal with a lot of paperwork. Your time is precious, so find out how much it may take for the application process. Knowing what documents you need to provide ahead of time can help you estimate how long you’ll need to commit.
Chris Panebianco is Director of Marketing for Bankers Healthcare Group, a provider of financial solutions for physicians. Send your questions to mjhlifesciences.com.