The dream of purchasing a place to call home—be it in the form of a condo unit or a house and lot—is etched in every Filipino family. However, many still resort to renting as they shy away from the pressing anxiety of having to pay a considerable amount every month. Fear not, because here in the Philippines, specifically in Cebu, you can apply for home loans depending on the amount you will need in the process.
One’s pursuit of fulfilling this vision should begin from being an astute financial steward through assessment of priorities in reviewing the kinds of loans as well as the finances attached to these. Before you dismiss it as a taxing process of paperwork and intimidating banking terms, here’s everything you need to know to maneuver your way through getting a loan for your dream home.
Bank Loan
If planning to, say, buy a Cebu condo unit, it is necessary to take into account the type of property you want, a studio, loft-type, or one with bedrooms. Other factors to consider also include location, principal amount, and tenure of the loan.
Be open to asking yourself questions like: “Do I have the capacity to pay within five years? Do I feel more comfortable with a thirty-year payment term?” or “Do I have emergency funds to cover unanticipated expenses along the way?”
Borrowing money from banks is probably the most sought after home loans among Filipinos. The best affordable condo or house can be acquired this way since here in the Philippines, lower interest rates are usually offered with ease. However, the downside is that several banks follow strict requirements for applicants.
To successfully pass through these prerequisites, make sure you are qualified as a principal borrower. Having an excellent credit history, including a stable income, is an advantage in this game. Aside from that, you may be required to present other documents or proof of financial capability.
Government Loans
If the bank loan is not a fitting choice for those wanting to borrow money, there is also another option. The Philippine Government offers reasonable housing loans to low-income and middle-income Filipinos who eagerly desire to own a place. Both the Pag-IBIG Fund and Social Security System (SSS) are the two most favored agencies for
This option is ideal for Pag-IBIG and SSS members who are up to date with their monthly contributions, minimum wage earners, overseas Filipino workers, and homebuyers who are always on the lookout for low monthly amortizations.
In-House Bank Financing
Offered by some property developers, in-house financing allows you to take out a loan directly from the developer. In some cases, it may be less stringent on the requirements and the approval process compared to bank financing.
How Do You Qualify for a Home Loan?
In our country, the possibility of getting a home loan application approved will always be based on financial stability. But other than this, many things need to be completed or organized. Commercial banks typically ask applicants to submit an application form and two valid IDs.
Usually, if married, both parties are expected to fill out the form. If single, on the other hand, you need to fill out separate application forms with the supervision of a co-borrower or co-mortgagor.
Other documents that will go through review includes tax declaration, collateral documents such as the photocopy of title and tax declaration, bill of materials, and marriage contract for borrowers who are married. If these demands are met, you may move forward to securing the best condo in Cebu.
When Do You Need the Home Loan?
Ideally, your home loan should be ready by the time you are finished paying the down-payment or equity, which is payable in thirty months with BLOQ Residences. Thus, the remaining amount of the total contract price is what you need to loan for.
Home Loan with BLOQ Residences
BLOQ Residences offers flexible loan installment plans through Pag-IBIG or bank financing. Since it’s built for the busy youth and young professionals looking for independence while expressing their style, acquiring a property in BLOQ Residences is simple and straightforward. After all, being less worried about the monthly payment gives you more freedom to enjoy your very own modernly mod home!