Purchasing a house is a dream come true for most Filipinos. However, making that dream a reality can prove to be difficult for families who aren’t familiar with the process. Fortunately, there are several housing loan options available these days that enable any family to have a house of their own, options that are quick, secure, and easy to apply for.
Prepare yourself to buy your own house by following these steps.
Create a monthly budget
Acquiring a house through a housing loan would mean that you would be required to pay monthly amortization for a specific number of years. You have to make sure that you can set aside more than enough funds to afford the monthly cost, plus other unforeseen expenses such as home maintenance and repairs. By establishing a monthly budget, you will be able to determine the maximum amount you can afford to cover these expenses.
Save for the down payment
The loanable amount you will be able to receive from a lender normally doesn’t include the down payment required by the housing developer or seller. Although some lending companies can offer a loanable amount as high as 80% of the appraised value of the property, you still have to come up with the down payment on your own. The amount required to cover the down payment varies depending on the property you are looking at. This is another reason why you should get serious about creating that monthly budget.
Prepare your documents
Aside from accomplishing a home loan application form, banks and other lending institutions will also ask you to submit documentary requirements to show proof of your identity, income and capacity to pay the monthly amortizations. Some requirements may vary depending on your employment status but the most common ones include valid I.D.s, Income Tax Return, pay slips, bank statements, and Certificate of Employment.
Source housing loan options
There are many housing loan products available in the market today. Before you decide which financial institution to choose, carefully study what their housing loan products offer. Pay special attention to its flexibility, as well as how low the interest rates are. The lender should be able to provide you with a list of requirements to submit as well as the terms of the loan and a detailed computation of your amortization.
Owning a home of your own no longer has to be tedious these days. It is best to be prepared to make the investment though, so study all your options in order to find the best housing loan option for you.