Most of us Filipinos dream about having their own homes. However, acquiring a house or any type of property here in the Philippines can be expensive. Purchasing properties, especially a home is not as straightforward as buying a phone, clothes, or any other luxury but it can be one of the most gratifying investments you can make. Interested in acquiring your own home anytime soon but do not have enough cash on hand? Worry no more because housing loans have got you covered!
Owning a home is not as simple as ABC as it will require a lot of money, patience, and time in the process. However, it is not an impossible feat especially if you’ll work hard for it. One of the first few steps in acquiring your dream home is to know the basics. Types of loans, home loan requirements, factors affecting home loan approval, real estate mortgage in the Philippines, and when is the best time to apply for a mortgage. This article will be discussing the basics as your primary guide in owning your home.
But first, what is a home loan? A home loan is intended to provide funds to acquire a fully developed property, whether it may be a condo, a townhouse, or a residential house and lot. A home loan can also provide funds for the construction, renovation, or completion of a residential property. A home loan is usually available from banks, real estate developers, or thru Pag-Ibig fund. A real estate mortgage in the Philippines means a contract where an immovable property, like a house/condo or any type of home, is put up as security by the debtor or the buyer in the creditor/lender's favor for a loan or any other principal obligation. Home loan requirements will depend on where you will apply for a loan but are usually comprised of an application form, proof of income, income tax returns, financial accounts, employment certificates, valid IDs, and other legitimate proofs to verify the identity and status of the buyer. Employment status is also a requirement as most of the banks will require the buyer to have worked for at least two years and earn a certain amount of gross monthly income. Of course, complying with all the requirements is not an assurance of an approved loan, there are several factors affecting home loan approval that you should be aware of. When applying for a loan, the lender will evaluate the application and the buyer’s qualifications based on the following factors.
Home Loan Qualifications
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Income
The buyer’s income will play a huge part in getting a loan. Credit score, income stability, contributions, and net disposable income are some of the important factors.
Age
When is the best time to apply for a mortgage? The buyer’s age is one factor that mortgage lenders look at to decide if you're eligible for a mortgage. If the buyer is over 50 and approaching retirement, lenders may see them as a greater risk. That's because once you retire, you won't receive a regular salary that’s why a certain range of age is also a factor. Usually, ages between 21-65 years old are eligible in applying for a loan. This factor is considered in identifying the maximum length of the loan term. In-house finance or loan on the other hand has a shorter tenure of only up to five years compared to Pag-Ibig and Bank loans that can extend up to 25 years.
Spouse's Income
If the buyer is applying together with his/her spouse, the spouse’s income will be evaluated as well.
Dependents
The number of the buyer’s dependents will also be a factor in determining their ability to pay.
Stability
Employment status is another important qualification to establish eligibility. 2 years is the minimum employment requirement.
Credit History
The buyer’s record of loan repayment will be reviewed as well based on different sources. Government agencies, banks, credit cards, and other collection agencies will be reviewed. Failure to prove your capability to pay your bills diligently can greatly affect your application.
There are a lot of financing options that are available right now – from retail, commercial, and insurance banks, brokerage firms, and insurance companies to loan mobile applications. If you’re interested in acquiring a condo through a loan, Vista Residences offers a lot of condos for sale in the Philippines. More so, Vista Residences offers an in-house loan option to their buyers as well. The company offers two types of options. They have in-house financing which is essentially getting a loan from the company itself. The main benefit of this option is that there are no more external partners. It also does not require the buyer to submit numerous documents and accomplish a lot of paperwork. Another option is financing from the bank which is the opposite of in-house financing. Said option involves third parties and a lot of documents to submit. However, they are more flexible in terms of options with the loans, and they lower interest rates. Vista Residences will help you with your goals and they will ensure that it is a long-term plan that will not leave you broke. You will get the worth of your money – your home and your investment. Interested individuals may check out https://www.vistaresidences.com.ph/ and contact a Digital Sales Specialist so that they can be assisted. Specialists will get to know your financial goal as well as your dream home and with the gathered information, they will help buyers achieve the best financing option so that buyers can get the best of both worlds.
Condominiums may be the most practical housing option for first-time homebuyers. If you’re looking for a condo for sale in the Philippines, Vista Residences is the condominium arm of the country’s largest homebuilder, Vista Land & Lifescapes, Inc. Offering you ready-for-occupancy and pre-selling condominium projects in Manila, Makati, Mandaluyong, Quezon City, Ortigas, Baguio, Cebu, and CDO that are strategically located within major cities, in close proximity to transit-oriented locations, premium universities, commercial spaces, and developed business districts.
For more information on Vista Residences, email [email protected], and follow @VistaResidencesOfficial on Facebook, Twitter, Instagram, and YouTube.
