One of the most important decisions you’ll ever make is whether you will buy a new house or invest in home improvement.
A lot of Filipinos desire to own a home. However, purchasing a home or other piece of property in the Philippines can be very pricey. But with the aid of a housing loan, you can still purchase your ideal home despite the huge upfront cost of real estate.
Read along to know some tips on how to get a housing loan approved:
1. Understand if you can avail of a housing loan.
You are allowed to avail of a housing loan if:
A. You are in possession of clean titled properties
Potential borrowers can take advantage of a low down payment and affordable housing program to buy a residential house and lot or lot only, townhouse, condominium unit, or any other single-family dwelling with a clean title and a contract to sell with developers.
B. You have an existing house but want to improve your residential property
Borrowers who would want to finish or renovate their residential properties in order to boost their worth, make them more useful, or just to make them more beautiful so that the family will be more comfortable
2. Know all the components of a loan and consider if you are amenable.
Knowing the components of a housing loan is essential before you apply for one.
These are the four primary factors you need to think about while choosing one.
A. Periodic payment
Your monthly payment should fit within your budget based on the loan amount the bank will approve you for. Remember, there are interest penalties if you miss a due date.
B. Initial payment
This sum is the down payment for a house.
C. Loan period.
The length of the loan directly affects the total amount of interest paid. The total interest paid increases with tenure and vice versa. On the other hand, the longer the loan, the lower the monthly amortization.
D. Interest rate type.
Fixed-rate and variable-rate terms are both available. If you desire regular monthly payments, you should go with the former. The latter features interest rates that fluctuate in line with changes in the market.
3. Eligibility
When you apply for a housing loan, your lender will consider the following aspects when determining your eligibility and capacity to repay the loan amount.
A. Earnings
Your income and/ or your spouse’s income (if both of you are applying for the home loan), and any other source of income, if you have one. This determines your capacity to pay off the loan and the amount that you are allowed to loan.
B. Age
Payments of loans may take years. Hence, age is an important factor to consider.
C. Occupation Stability and Continuity
Generally, in order to be eligible for a house loan, you must have been employed for at least two years. You might still be approved for a house loan even if you work for yourself or own a business. Additional information regarding your taxes, earnings, income, business licenses, and other pertinent documents will be required.
While upholding adherence to strict lending laws and procedures, the Bank of San Jose has paved the way for more hardworking Filipinos to realize their dream of home ownership.
Bank of San Jose offers a “Pa-Bahay” Housing loan; a house and lot acquisition and home financing program that can be processed for a minimum of 8 banking days after all the requirements are complied.
Achieve your dream house without having to worry about hidden bank charges and Pre-Term Fees. The bank offers Paybreaks and provides a variety of promotions and flexible payment alternatives to meet every type of property seeking.
Know more about their guidelines and requirements here, give them a call, or visit their branch near you.
