By Christin Hume on Unsplash
So you want to take that first step to get your own home? You have your dream home in mind already, but you don’t know where to start. We know it may sound daunting, so we’ve come up with seven basic steps to get you pre-approved for a mortgage house loan.
Step 1. Check Your Eligibility
If you’re 21-65 years old upon loan maturity, a resident of the Philippines, or an OFW, then you can definitely apply for a loan.
Step 2. Pre-qualify
Loan pre-qualification is different from loan pre-approval. It’s the first step borrowers take to see how much they will be able to borrow. There’s a lot of online home loan calculators or quizzes on bank websites. These can give you a good estimate of how much you need to pay.
Questions asked at this stage may include:
Property selling price
Loan amount
Down payment
Desired interest rate
Monthly Income
Number of years to pay
Results will show your monthly amortization, loanable amount or sometimes the income needed to get the loan.
It’s a reality check on what types of homes you can afford with your income now or a goal-driver for what you should be earning to get the home you want.
Step 3. Save Up For Downpayment
Banks usually need a 20% downpayment to get a mortgage house loan. For a home worth 3M, you should have Php 600,000 ready when applying for pre-approval.
Step 4. Secure Your Income
Knowing your income and your spouse’s lets the bank know your capacity to pay off the loan.
Having a stable job in a secure industry helps you get pre-approved faster.
Step 5. Get Your Liabilities In Order
If you have an existing auto loan or credit card debts and have been handling the payments properly, it shows the bank you handle your finances well. Getting clear on these will also inform the bank how much more debt can you handle.
Step 6. Consider The Property’s Appraised Value
Aside from preparing your capacity to pay, consider the appraised value of the property.
Coming in with an investor’s mindset, both you and the bank should assess how attractive the house is to potential buyers later on.
The number of bedrooms & bathrooms in your home will have a lot to do with how easy it will resell. If it’s in a good neighborhood like Avida and there are future development plans in the area, it gives you better chances of getting pre-approved.
A trustworthy developer like Avida gives you leverage because its definite that the property will grow in value.
Step 7. Prepare Necessary Documents
These include application forms from the bank, IDs, income documents (Certificate Of Employment, ITR, pay slips, bank statements, etc.) The documents of your spouse or co-borrower are also needed.
Once the ball gets rolling, you’ll be able to move into your new home in no time. Some home mortgage loans get approved in as fast as a few days.
You see, it’s okay to dream; everything starts somewhere. Once you know your goal, you’ll know the steps on how to get there.
You’ll find something very close to your dream home in one of Avida’s many developments in BGC, Pasig, Makati and elsewhere. Visit avidasales.com to see where you can make your dream a reality.
Courtesy of Pursuit of Passion
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