There are many ways to acquire a Home Loan in order to get the BRIA house and lot that you want but they are not as complicated as you think. If you’re looking for ways on how to get that dream BRIA Home through Bank Housing Loans, then this article speaks the right language for that! This article contains 10 steps that you basically have to know and follow to get approved for a loan. Stick through the ending, because this might potentially help you plan ahead and mentally prepare for a future that you want.
Bank Housing Loans seem intimidating at ﬁrst, with so many to think about and many to take note of. There are several articles out there that can get overwhelming so we contracted it to the 10 most basic things you need to know. So maybe with this guide, it will answer your curiosities. Here are the steps:
1. What is a Bank Housing Loan?
This is where a bank of your choice gets to ﬁnance your dream house and lot (yes, can be a house and lot, or just a house from BRIA Homes) but if they ﬁnance it, this would now be called a Loan or money you borrow from the bank. This bank pays for the house or house and lot (and many more properties available) of your choosing, and then you pay the bank back through yearly and monthly installment plans. These plans depend on which bank you would like to work with. Famous and more accessible banks here in the PH usually have these Home Loan plans you can choose from, depending on the budget you can have.
Your dream property, especially in Bria Homes, is now within your reach! These plans help you get what you want and live a life you want to live. Second, the banks do their due diligence when it comes to the paper works for the housing projects and they require documents that keep you safe from harm either physically (for insurance) or ﬁnancially. Third, you can possibly optimize the tax at this current age. Lastly, you can see where your budget gets spent on and it’s a tangible thing – a property. This is such a good investment because it’s one of the basics of living comfortably. This is all according to Shetty (2020).
Different banks offer different loan plans and to safeguard both you and the organization, they will require a lot of documents and could be quite rigorous to go through. However, the end result is worth it.
2. Get to know the type of Home Loan you need
Conventional Home Loan
If you prefer this, it means that you can pay a FIXED AMOUNT in a speciﬁc period of time (Money Max, 2020). If you’re the type of person who wants to budget ahead of time and see future ﬁnances, this Loan type is for you. You must be good at budgeting your money in order to pay consistently with this kind of loan. With this, you can have a foreseeable ﬁnancial future and payment scheme. There are little to no “surprise” payments with this method. This is perfect for those who like to plan ahead of time, and want to keep an organized budget because you already know a ﬁxed amount of money to put into account. If you’re good at budgeting,this one’s also possible for you.
Flexible Home Loan
This type of loan is the one that most banks offer(MoneyMax, 2020). Contrary to popular belief, there will be little to no“surprise payments” when you also choose this. It’s all in the process of how you budget your money allotted to your dream house. These ﬂexi loans are connected already to your active chosen account. What’s good about this? There is a possibility that you can reduce your Loan Interest every time you deposit cash into the account. You, as a borrower, can choose this type of loan if you want to lower your monthly or yearly interest rates. Some sources even say that you can withdraw the EXCESS amount you have deposited ANYTIME without giving prior notiﬁcation to the bank! This is perfect if you are looking to decrease payments when you have that extra money to deposit. In the long run, this is beneﬁcial for your savings. Also, you can begin principal repayment ANYTIME. This type of control of your interest rate could be such a good decision, depending on how much you are willing to pay for extra at the time for depositing for the loan.
3. Find out if you are eligible for a Bank Housing Loan or Bank House and Lot Loan!
Check your preferred bank to see what their requirements are, but it’s mostly these:
- Age: 21-65 years old(not many banks offer to anyone below 21 or above 65, but if you’re curious, head on over to the website of the bank of your choosing and go to their Home Loans page.)
- Income: What’s your individual income? It can also be measured through the gross monthly income of your home, which is for most banks.Most like to be P50,000 per month for gross income. This form of income must be stable from employment or business. What else could affect your housing loan eligibility? Credit History. This is because the bank can see if you have a credible and good history of repayment of debts. This can have a huge impact on the decision, so be wise!
- Nationality: You must be a Filipino Citizen. If you’re no longer living in the Philippines but still a citizen, there are banks that still accept this circumstance. If you are an OFW, there are several more documents that you have to provide such as Certiﬁcate of Employment from POEA, and the special power of attorney. Adding to that, if you are a foreigner, VISA requirements must be met and the Alien Certiﬁcate of Registration must be passed.
4. Learn the requirements!
This step could be overwhelming to see, but consult with your Loan oﬃcer for which requirements are needed to be submitted so that there will not be any mistake, confusions, or excess. There are several types of documents that are required by the banks and differ in categories which falls under:
- Application form (all banks require this)
- Co-borrower Application Form
- Community tax residence certificate
- Government IDs
- Marriage Contract (If applicable)
- And as far as Bio Data/ Resume
- Proof of Income
- Certificate of Employment (COE) (mostly required)
- Deposit Statement of Accounts
- Income Tax Return (ITR)
- Mortgage Redemption Insurance Form
- Proof of income if Self-Employed
- Articles of Incorporation and By-laws with SEC Registration Certificate
- Bank Statements/ Passbook
- DTI/SEC Business Registration (mostly required)
- Financial Statements (audited if necessary and mostly required)
- GSIS/SSS/Driver’s License/PRC
- Income Tax Return (mostly required)
- List of Trade References
- Mortgage Redemption Insurance Form
- Proof of other income (if applicable)
- Collateral Documents
- Appraisal Fee / Appraisal Fee Official Receipt
- Authority to inspect and verify Bill of Materials / Cost Estimate
- Contract to sell or reservation agreement/ Deed of absolute sale
- Floor or building plan/ vicinity map
- Occupancy Permit
- Statement of Account
- Tax Clearance, Declaration, and Receipt
- Transfer Certificate of Title (TCT)/ Conditional Cash Transfer (CCT)
- Authorization Letter for Property Collateral Verification and Tax Mapping
- And some other documents required by each bank like Security Bank checklist, PNB, Metrobank, BDO, BPI, Landbank, etc.
*NOTE: Along with the listed requirements, you mightbe required to have an Authorization to Conduct background check document.
5. You need to know what terms you are comfortable with.
Different banks have different loan terms. Most ofthese are available in their respective websites, for easy access.
- How many years would you prefer to pay?
- What’s the best minimum loan amount for you? These could go as low as a minimum of PHP 375,000 to a minimum of PHP 1,000,000.
- Find out the maximum loan amount, too. These could go for a maximum of your capacity or 80% of appraised value.
Different banks have different sets of these Loan Terms, so make sure to choose which one you are most comfortable to pay at a consistent amount(in where you are qualiﬁed).
6. Get the visualization of the Interest Rates of your Loan Term.
By far this step is where it gets a little intimidating to ﬁnd out, but getting that affordable BRIA Homes house and lot you want is gonna make it all worth it! It’s usually listed in their sites, so you can check them out in the comfort of your own home.
These rates are usually tied to Banko Sentral ng Pilipinas(BSP) rates. Banks offer ﬁxed rates on your ﬁrst year. As for the succeeding years, there could be adjustments. Again, these all differ from bank to bank.
*Note:The more years you have to pay, the higher the interest rates.
7. Visit your local preferred bank and consult with them!
After knowing all of these requirements, still make sure to double check with your preferred bank. Consult them and ask questions to clarify points in the Loan Terms and listen to their offers that suit your budget and qualiﬁcations for your dream BRIA Home.
8. Pre-qualiﬁcation is where you might want to get extra serious!
After choosing your preferred local bank, you want to have a Loan Oﬃcer that would compile your requirements to be sent to the Loan Processor. Your information is then assessed by the Oﬃcer if you are qualiﬁed for a Loan or not.Usually, a Good Faith Estimate and a Lending statement will be asked from you and shall proceed from there. Loan offers are based on those mentioned paperwork. This is also the step where they offer you reasonable plans that suit you and your needs.
9. The Approval Process (might be long, but so worth it!)
You have the power to choose loan oﬃcers and the banks you want to borrow money from depending on your taste and budget. What comes after compiling all the requirements needed for the loan? You then should submit it to a loan processor that is responsible for compiling the ﬁles, getting the appraisal, and then double checking if more information and paperwork is needed from you. Be sure to submit the necessary paperwork as fast as you can as this is a busy work to do and any instances that you submit late, it can affect the outcome or the decision of the bank. Files are then handed to the UNDERWRITER who decides if it is approved or (hopefully) not, when the appraisal is complete.
10. After being approved, pay your dues!
Congratulations! When you’ve completed all the steps, don’t forget to thank your Loan Oﬃcer and be reminded to pay your dues every month or so. Be diligent about this so you do not encounter any problems at all when it comes to your relationship with the bank or in your personal ﬁnances.
These are the 10 simple and basic steps to know when you are applying for a Bank Housing Loan. Although it could be quite overwhelming, you always have a guide (Loan Oﬃcer) to tell you the speciﬁc things you need. Housing Loans could be quite intimidating at ﬁrst, but this form of investment is such a worthwhile thing to process as early as possible, and as needed. Bria Homes can help you achieve your dream properties with the partnership of the bank that qualiﬁed you to have a Bank Housing Loan. May this list help you process and absorb much needed basic information before getting that dream house and lot. Don’t worry, your Loan Oﬃcer will not give you any Loan Plans that you can’t factually handle (based off of the requirements you submitted and your capabilities to pay the bank back). The varieties of plans are present, you just have to choose very carefully and wisely. Don’t be afraid to research more. Below are the sources from which you can further read about Bank Housing Loans.
BRIA Homes is a subsidiary of GOLDEN MV Holdings, Inc., one of the largest real estate companies in the country. BRIA Homes is primed to bring quality and affordable house and lot packages and condominium units closer to ordinary Filipino families. This is the goal that drives every single employee in the company, for which the ultimate fulfillment is seeing a client happily moving into BRIA’s homes.
To know more, visit their website at www.bria.com.ph, like and follow “Bria Homes, Inc.” on Facebook, Twitter, Instagram, YouTube, Pinterest, Spotify, Viber Community, Telegram Channel, Kakao Talk, LINE and WhatsApp, or call 0939-887-9637.
Written by Adrianne Jane B. Patinio