Mercantile Bank Physician Home Loan Mortgage Review

Editor's note: Mercantile Bank no longer offers physician mortgage loans. If you're a medical professional looking for a doctor mortgage in your area, visit our updated page to view the best physician mortgage loans by state.

Medical professionals, such as physicians, dentists and other health professionals, often have the chance to make a high income after finishing their advanced degrees. However, these degrees often result in borrowers with high medical school student loan debt.

Even if you can handle your monthly student loan payments, dealing with underwriting can be difficult if you have a lot of student loans and are just starting your career.

Mercantile Bank offers some doctor loan and financial services options for those in Indiana, Kentucky, Michigan and Ohio. Here’s what you need to know to move forward if you want to explore your eligibility.

Mercantile Bank physician mortgage loan details

Founded in 1906, Mercantile Bank was designed around the communities they serve. The bank prides itself on tailoring solutions for community members, including medical professionals and other professionals.

In 2013, Mercbank became part of United Community Bank. It’s still mainly a regional and state bank that’s focused on the community.

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Mercantile Bank physician mortgage loan: Pros and cons

When reviewing your home buying options, including those for different professionals, review the disclosures and fees. Make sure you’re dealing with an equal housing lender. Like any mortgage lender, Mercbank offers advantages and disadvantages. Here’s what to consider when choosing a doctor loan from them.

Mercantile Bank physician mortgage loan pros

You can learn more through online banking and talking to a mortgage loan officer about your options. But it’s important to compare the pros and cons of physician home loans.

Low down payment options

Depending on your situation, you might qualify for low down payment choices. Check with the bank to determine whether you qualify for jumbo loans and other options that offer you different choices. If you aren’t eligible for a medical or another professional loan, you might be able to get an FHA loan, VA loan or USDA loan with a low down payment.

Different mortgage options

Mercantile Bank offers different loan options, including fixed and adjustable-rate mortgages. You can get a 15 or 30-year fixed rate, and adjustable-rate options with different repayment terms.

With the help of a physician mortgage loan calculator, you can better determine which options will help you meet your goals, including building home equity.

Personalized service

Mercantile Bank prides itself on providing personalized service and loan options. In addition to home mortgage loans, it also offers personal loans and other financial services. If you’re a doctor or other medical professional, you might be able to find a program that works well for you.

Mercantile Bank physician mortgage loan cons

Before moving forward with any bank or credit union, you should understand the downsides of their programs. There are downsides to any doctor loan program, and you need to make sure they outweigh the advantages.

Small down payments often mean higher monthly payments

Because doctor, dentist and professional mortgage loans often allow for lower underwriting requirements and access to a jumbo loan without the requirements that come with a more traditional program. However, your payments will likely be higher and there’s a chance you could be house poor.

Limited transparency around its doctor loan program

The Mercantile Bank online presence isn’t transparent about what they offer. Instead, you need to check with the internet posting and talk with a loan officer to see what programs and options are available to you.

Credit score minimum

The Mercantile Bank doctor loan program doesn’t specify a required credit score requirement, but many physician loan programs expect you to have a score of at least 700. Good credit is required if you want access to the lowest interest rates.

Some other loan programs, like FHA and VA loans, have lower purchase price limits but more flexible credit score and underwriting requirements.

How to apply for a Mercantile Bank physician mortgage loan

When buying a home, consider comparing three and five mortgage lenders for terms and conditions. Look at criteria like debt-to-income ratio, down payment and the underwriting process. Also, consider which programs best fit your needs and home requirements.

If you decide Mercbank makes sense, here’s how to move forward.

Step 1: Contact Mercantile Bank

To start the approval process for a professional loan, contact a loan officer (or have your real estate agent take care of it).

Your best results come from having this information available:

• Name
• Email
• Phone number
• Loan amount
• Purchase price
• Property location (including ZIP code)
• Degree
• Proof of employment

Step 2: Gather the necessary documentation

Most mortgage lenders require documentation when you get a home loan. Your mortgage loan officer at Mercbank can help you figure out what you need:

• Purchase agreement.
• Employment contract or pay stubs.
• Recent bank statements.
• Tax returns.
• Driver’s license or other ID.
• Other documents, as requested.

Whether you’ve done this before or if you’re a first-time homebuyer, knowing what you need ahead of time can help you get through the process faster.

Step 3: If approved, accept the loan

If Mercantile Bank approves you, decide whether it makes sense to accept the home loan. Review the paperwork and ensure that it matches what you expect. Once you verify the information, you can accept the terms and close on your home loan.

Should you apply for a physician mortgage loan with Mercantile Bank?

As you review your needs and budget, the dentist and physician mortgage loan programs can help you reach your goals and build home equity.

Confirm that you’re ready to buy a home and compare Mercantile Bank to other physician mortgage lenders. Alternatively, you can also fill out the form below for more information about comparing doctor mortgage programs.