Before you commit to buy a new home, it’s only prudent to know, for a fact, how much you can actually spend and how exactly you are going to finance your purchase. Don’t come empty-handed; arm yourself with information on housing loan applications and options right away.
1. Consult with a mortgage broker.
2. Get your finances in order.
You should take all of these things into consideration before you finally decide on the amount that you can afford for your monthly payments for your new home.
3. Check your credit score.
And here’s a tip: Before applying for a housing loan, avoid incurring new debts or making any major purchases like buying a new car using your credit card.
4. Shop around and compare.
Banks, on the other hand, offer lower interest rates but have more stringent requirements for loan applications. Moreover, the amount of loan depends not only the total property value but also the borrower’s paying capacity and credit history. This means that the higher the borrower’s income is and the better his/her credit score is, the higher the amount the bank is willing to lend.
Meanwhile, the Pag-IBIG Fund, also known as the Home Development Mutual Fund, is perfect for middle-class Filipinos (and even minimum-wage earners) who dream of owning a home without having to pay high amortization and interest rates.
5. Use a mortgage calculator.
6. Prepare and secure your documents.
While document requirements vary from lender to lender, the following are the most common ones, so you better keep these handy:
– Application form: Most lending institutions now provide applications forms online so you can easily download them from their websites and fill them out early on.
Government-issued IDs: Banks usually require applicants to submit at least two photo-bearing identification cards issued by government agencies.
· Driver’s License
· PRC ID
· Digitized BIR ID
· Digitized SSS ID
· GSIS E-card
· Unified Multi-Purpose ID
· Voter’s ID
· Senior Citizen’s ID
· Postal ID
· NBI Clearance
· Police Clearance
· OFW ID
· OWWA ID
· Seaman’s Book
· Alien Certificate of Registration/Immigrant Certification of Registration
· Government Office and GOCC ID (examples: AFP ID, HDMF ID
· Certification from the National Council for the Welfare of Disabled Persons
· Department of Social Welfare and Development Certification
· IBP ID
· Company IDs registered with or supervised or regulated either by the BSP, SEC or IC
– Proof of income: These include your certificate of employment indicating your annual income, payslips, income tax returns and bank statements.
7. Be prompt in responding to your lender.