A home is considered a man’s basic necessity for security, safety and survival. It is every Filipino’s dream to provide his self and his family a roof over their heads. Having one’s ideal house is an open gift everyone can have but definitely takes extra effort to make it real.
In real estate industry, there is a wide variety of choices to help you realize that dream house. Whether a house and lot or a condominium unit, it is best to know where to start. What can be done first?
Bank rates and loans
Since Filipinos are known as hard-working people and also predictive that they will invest most of their hard work on building better homes for their families, banks like to capture their attention to house loans. Banks offer several loaning schemes which will help you manage your investment. In usual cases, loaning from a bank is best preferred by most home buyers since the interest rate is lesser than in-house financing. Visit http://www.imoney.ph/housing-loan to know the different bank loans, rates and calculate your possible monthly dues.
Eligibility for PAG-IBIG loan
Pag-IBIG also offers home loans to its valued members. What makes one eligible to acquire a housing loan from Pag-IBIG? To personally check on the following: Pag-IBIG Membership; Age; Capacity To Pay; Other Pag-IBIG Loans, visit http://www.pagibigfinancing.com/articles/2011/how-to-check-if-you-are-qualified-for-a-pag-ibig-housing-loan/ to read more about your eligibility and the requirements that come with it. You may also visit http://www.pagibigfund.gov.ph/ to check on the forms and other services you can avail from Pag-IBIG.
Amount to Loan
When you have applied for a home loan from a bank, the question now is how much can you borrow? Most banks impose a minimum loan amount of PHP 500,000.00 or 80% of margin of financing and 20% down payment; however, it is important to know that banks in the Philippines practice the margin of financing or what they call loan-to-value ratio. How does this work? The bank you applied a house loan for will base the borrowed amount on your age and income bracket, property type and location and the current value of the property on the market. So it is best to take your time in deciding, calculating and reflecting on the matters at hand.
Other miscellaneous finances
Also, when building your dream home, you should also consider the side cost you have to spend. Raw materials, pipes, frames for foundation and all other necessary materials needed to build your home will also come to play. Paying for land taxes and necessary documents are also important to comply with government requirements. Some of these processes may entail addition fees such as:
- Appraisal fee
- Registration expenses
- Documentary Stamp Tax (P1.00 for every P200 of the loan amount)
- Mortgage Redemption Insurance
- Handling and Notarial fees
There are other important matters to consider when you buy a house and lot or a condominium unit especially when it is your very first attempt to take that big step. So don’t lose that hope and confidence. You may always call a friend anyway.
What are you waiting for? Get ready and start your dream house build up today!
