Getting Ready and Being Prepared to Buy your First Home
Contrary to what we normally think, home buying does not start with home searching. The following are some important aspects to consider when buying a home for the first time.
1 – Have Your Financing in Place
Get pre-approval for a loan/mortgage with a reputable bank or lender before you begin house hunting.
Below is a list of Philippine banks that provide real estate mortgage loans.
As a rule of the thumb, your gross income should be three times (3X) more than the monthly amortization of the house. Bear in mind, that one qualification, is that your home expenses should not exceed thirty percent (30%) of your gross income.
Other debt/loan payments are deducted from your income. A credit check is done by the banks/lenders before you qualify for the loan.
It’s so depressing to do the viewing of the home you really liked but cannot afford. You’ve just wasted time, energy, and emotions.
2 – Stick With Your Budget
Determine your budget and stick with it. Choose a house that you are comfortable paying, not a house with an amount that you are qualified to buy.
Check all the options regarding financing. Know if there are buyer’s promos or incentives offered by the developer. Take advantage of it.
3 – Consider the Down Payment and Other Costs
When you buy a house, you have to put 10-20% Down Payment payable in 6-12 months to the developer. Additional cost is the transfer cost. However, most transfer taxes and cost are incorporated by the developer in the Total Contract Price.
Consider also the loan fees that you have to pay to the bank/lenders, property taxes to the government and home insurance. Get a Mortgage Redemption insurance (MRI), if possible.
4 – Get a Reputable and Experienced Realtor
Choose a realtor who has the knowledge, experience, and work ethics. Choose someone whom you think can guide you and provide answers to your questions. Set an appointment to discuss about home buying process and financing schemes. Licensed realtors and agents are normally paid commissions by the sellers or developers in the Philippines so, there is really no need to be wary about overpricing done by the realtors or agents. Many first time homebuyers need to be educated in this matter. The prices of houses are the same with or without a realtor. The real estate practitioners in the Philippines have been professionalized by the Professional Regulatory Board (PRC) and all licensed realtors are bachelor degree holders. You need an expert who is on your side, someone who has your interest at heart. A good realtor can protect you from pitfalls that may occur during the home buying process. As a general rule, an expert is always indispensable.
Contact Us For Help on Buying Your First Home
Remember, that in buying a home it is very important to be rational, well-informed and well-prepared. Now, get ready to buy your first home.