The importance of location in house buying has undoubtedly been stressed to you countless times. Location is generally one of the first considerations you make when looking at various real estate listings, whether you are an OFW who has been house hunting for years or someone who is only recently entering the housing market.
Choosing a location where you and your family will live for the foreseeable future might be difficult. Making that choice requires careful consideration of all the options and extensive research.
How to choose the ideal house for your family?
These are the 5 ways for finding the perfect home:
The ideal location is the most important factor to take into account when choosing your permanent home because, unlike the layout and decor of your home, you cannot modify it.
Is the house not in a floodplain? What facilities are available nearby? Will your children have easy access to schools and universities if you have children? If any of you get sick or have an accident, what about hospitals?
You should inquire about and see the facilities located within the property if you are thinking about relocating to a master-planned community. Do you and your family have access to public spaces? Are there any unique structures, such as businesses and stores, that have been built in the neighborhood to make life easier for locals?
Make a housing budget.
The first step in buying a house is to set a reasonable budget before looking at suitable residences. Once you’ve chosen a budget, follow it religiously. Check your list of “must have” and “nice to have” characteristics before deciding how much you can afford to pay.
Additionally, this entails thoroughly investigating any residences you’re thinking about, as well as budgeting for moving costs and any renovations that could be necessary. It’s important to take unanticipated elements into account, such as lengthier commuting hours or if your future home will have energy-efficient appliances. They all add up, and if you don’t have a spending plan in place, you can find it easy to go over your allotted budget.
Moving on to the Buying Process.
Making an offer is the next step after choosing. Never hesitate to haggle over the seller’s asking price. Your real estate agent can conduct the discussions on your behalf if you’re unclear on how to proceed.
The next step is to arrange for a house inspection if your offer is approved. An independent assessment of the state of the house is given to you by a home inspector. If it turns out that your property requires pricey repairs, the money you invest in a home inspection can end up saving you money in the long run. Your real estate agent and you can renegotiate your initial offer when you receive the findings of your house inspection.
Speaking with a real estate agent.
Finding a qualified real estate agent to work with could be worthwhile if you’ve been unsuccessful in your hunt for a new house. A real estate agent can help you find the ideal home for your needs because they are knowledgeable about neighborhood market trends. Your search can benefit from their experience and knowledge, which will place you ahead of other homebuyers.
A real estate agent can also handle the necessary paperwork and bargain on your behalf with the seller. Working with a real estate agent can help the house-buying process go more smoothly and quickly if you’re a first-time home buyer.
Remember to keep your family secure.
Once you’ve chosen a neighborhood, do some research on the area’s security so you’ll know what to expect. You may better safeguard your family and install safety precautions in your home in this manner.
To find out more about the area’s safety, stop by the local police stations. Ask your potential neighbors for information while you’re there.
The Residence Style That Is Best for Your Family
There are numerous different types of houses and real estate jargon and terminologies could be confusing to you. However, based on the lot form and how each would match your family’s demands, we have identified the four fundamental house kinds for your convenience.
1. Detached single-family home.
A single-detached home is among the ideal home styles for families. A home in the middle of a lot is what this style of house is. Accordingly, all four sides of your property are undeveloped. The walls between your home and the neighbors are not shared. Nevertheless, bear in mind that it is quite pricey, particularly considering how demanding its maintenance may be.
This kind of house type is great for:
- Families with two or more children should consider buying a home on a big lot so they may expand their living space, whether they desire more rooms or a big garage.
- Since you own everything on your land, those who desire complete seclusion. This is also perfect for a dream home.
2. A single attached building
The house occupies the lot’s center in a single detached home. However, with a single attached property, only one side of the home is constructed, allowing room for open space on the other side of the lot. This space could be turned into a garden or a garage.
This kind of house type is perfect for:
- Small to medium families who desire a location for outside events and activities.
- Those seeking a large lot that is far less expensive than a single detached home.
- Those seeking a simpler-to-maintain home.
On the other hand, a townhouse is a form of residence where residents share walls. Be aware that row houses are another name for townhouses. Row houses are one-story residences with identical structures, according to some developers.
Townhouses are often tall and narrow in comparison to single detached homes, which offer a lot of space for movement. Except for the ones at the front and back of the home, there are no side windows. A garage might or might not be present. The best way to enlarge the house is by adding additional levels. Due to the smaller lot size, townhouses are also simpler to maintain.
Additionally, since you live close to other homeowners, you could get to know them, which helps you develop and experience a feeling of community.
This kind of house type is great for:
- Families that don’t have a lot of money but want a room big enough to fit a family of four or five.
- Retirement-related downsizing.
- Families just starting don’t want the high costs of upkeep and renovations to weigh them down.
A condominium complex is made up of residences that are housed in the same structure. Each apartment is privately owned. Elevators, gyms, tennis courts, basketball courts, swimming pools, and parks are examples of shared or public areas that are owned by condo owners. Parking spaces are often not included because condo owners must buy them separately.
Financing for Your Selected Type of Home in the Philippines
The following phase, provided you have already inspected the property, is the acquisition procedure after you have determined which sort of home is appropriate for your family in a suitable area. The down payment is where it all begins. You could have to pay the remainder of your down payment within a year or two if the developer is providing pre-selling properties. However, developers that have finished their work might give you a sizable discount if you pay a spot-down payment.
You should proceed with the procedure by seeking the best financing option, regardless of whether you have already paid your down payment in full or are still making it. While not all of us can afford it, some buyers with the wherewithal may pay in spot cash.
You may wish to have a look at these four financing options:
1. Loans from banks
You may be able to secure a loan from a bank to purchase the house of your dreams. Different loan terms, interest rates, and payment options are available. Some banks can lend more than this amount, however, most banks are only willing to finance up to 70% of the cost of the property.
2. Financed by Pag-IBIG
If you’re an employee who consistently contributes to PAG-IBIG, you can use this funding option to pay for your house. You can borrow up to PHP 6 million using the PAG-IBIG Fund Housing Loan to buy a house and lot, a condominium unit, or a residential lot.
3. Internal Financing
Additionally, you might let the building’s developer handle your mortgage. You can finance internal projects without dealing with PAG-IBIG or visiting a bank. Your amortization will be paid directly to the land developer. If you’re purchasing a pre-selling home, keep in mind that developers typically offer in-house financing; it can be challenging for you to locate a ready-for-occupancy project that has this financing option.
This payment plan, often known as a lease-to-buy, enables a tenant to buy the home they are presently residing in. Suppose the owner rents you his condo for two years with the option to purchase it from him when the lease is up.
This plan has the advantage of locking in the property’s purchase price thanks to the contract you and the owner signed. Consequently, you may be certain that even if the cost of nearby houses has increased, you can still purchase the property at the same price.
What exactly is a pre-approved mortgage?
When you are pre-approved for a mortgage loan, the lender will send you a letter outlining the maximum loan amount you are eligible for. Note that this is not the final loan agreement; rather, it is a confirmation that the loan officer has analyzed your credit and financial profile, including your bank statements, debt, and income, and has determined that you are eligible for the lender’s home loan terms.
Information on the loan’s interest rate and the total amount of the monthly installments may also be included in the pre-approval letter. When your request for a home loan is approved, you will receive a written confirmation. After reading this letter, real estate investors can relax knowing that you’ve already started collaborating with a lender who is eager to offer finance.
For more details on the home loan pre-approval procedure, read the article below.
How to Pre-Approve a Loan from a Bank?
Speak with your creditor to confirm your financial condition and acquire an estimated loan amount before requesting a mortgage pre-approval. Let’s go over these crucial elements in obtaining a mortgage pre-approval as well as final loan approval and discuss your duties.
1. Display evidence of a stable source of income
If you cannot provide a consistent source of income, no bank or mortgage lender will extend your credit. If your income is unstable, lenders may be apprehensive since they will have less confidence in your capacity to repay the loan without steady employment.
Lenders are primarily concerned with your ability to make timely loan payments without jeopardizing your standard of living or basic needs, so they will consider not only whether you have a reliable source of income like a salary, business profits, or freelance work, but also how much of that income you generate.
Ensure you have at least two years of employment at your current job and a strong professional basis before applying for pre-approval. Similar employment tenure expectations apply to independent contractors and business owners.
2. Have enough savings on hand
You ought to establish a sizable emergency reserve before considering purchasing a home in the Philippines. Due to the high cost of healthcare for the average individual, emergencies, especially those involving health, may be too expensive to be covered.
It is advisable to have savings or emergency funds set up before making a down payment on a house for sale in the Philippines so that you won’t have to use it to cover an emergency housing loan down payment.
3. Do not forget to consider your credit report
In the Philippines, lenders employ a range of credit scoring methods to calculate various credit score predictions for their clients. Additionally, the type of loan you’re asking for may have an impact on your credit rating.
Your name, SSS/GSIS numbers, TIN, employment information, address, employer data, debt-to-income ratio, and business may all be included in your credit report. The credit report also contains information about utility subscriptions, banking institution loans, and other debts that the CIC is authorized to collect.
Informed lending choices for applications for personal loans or mortgages may be made by creditors and service providers utilizing this data. Customers who have a history of paying on time will receive special treatment, including access to more services and lower interest rates.
4. Review the regulations and guidelines of the bank.
To avoid any unpleasant surprises, you should thoroughly read the tiny print of any bank you are considering doing business with. At the moment the loan is approved, borrowers might have to consent to the bank placing a lien on any collateral. If you don’t repay the debt, the bank may seize and sell your possessions to recoup the money it lost on the loan.
Understanding the bank’s loan approval standards is therefore advantageous. Financial companies assess your age when deciding whether or not to lend you money. Between 30 and 50, when borrowers are frequently well-established in their careers, is the prime lending age for banks. Since they have been employed for some time, they have plenty of time to pay off the monthly mortgage payment.
5. Raising the amount of your down payment
Less borrowing means fewer debt commitments in the future. The money you save can be put to any use you want, or you can refinance your mortgage to pay off the balance sooner.
Because the lender has a better possibility of making money during a foreclosure sale, lenders prefer borrowers who take out lower mortgages on homes. If you don’t make your payments on time, the lender may threaten to foreclose and recoup your down payment.
When purchasing a home for your family, you should pay close attention to the elements that directly affect your comfort and long-term goals. The ideal sort of home for your family will not only fit your lifestyle but also enable you to maximize the value of the home and future financial savings.
Bria Homes Your Home of Choice
If you are looking for the perfect home for your family Bria Homes is one of the Real Estate in the Philippines that have an affordable house and lot and condominium units closer to ordinary Filipino families. In every Bria community around the nation, there are places of worship, hospitals, schools, and commercial organizations close by. Major roads and highways are also nearby. Customers may also choose the financial funding option that is most convenient for them (such as PAG-IBIG funding or bank financing).
Written by Janine Nato