How To Acquire House Thru Bank Financing -Your Way To Success

Buying a house is a laborious task, you will need lots of patience and time specially if your only option is to get a loan from lending institutions. Getting the loan approved by the bank is not an easy process but it is not impossible. There’s a list of requirement that you need to accomplished before this institution approved your loan. And yes, the main qualification is your capacity to pay back the loan bank will lend you.

For us working class it will need all our dedication, hard work and careful financial planning, but still owning a house is one of the biggest accomplishment we could have. There are many questions we need to consider before applying a housing loan. Questions like, are you financially capable to own a home? Can you pay the monthly amortization on time even in the time of emergency, do you have emergency funds? Home loan is a long term, even lifetime investment, are you prepared? In this post, we will define what is a housing loan, discuss bank requirement a buyer needs to prepare when applying a house financing loan thru bank together with that application and approval process

What is a Housing Loan?

In layman’s term, a home loan is simply borrowing money with interest for a specific period of time to purchase or to renovate a house. In case of non-payment or default, the bank can liquidate the property and get back its used loan amount.

It is also defined as a debt you incur when you want to acquire house thru bank financing. You have to pay the amount borrowed with a definite amount regularly for a definite period of time, in addition the bank charge you with interest which also varies in respect to the time you want to pay back the lender. In the Philippines, home loan is available thru list of banks, developers, Pag-IBIG Fund. Interest rates varies from these lenders, we’ll cover it later in this post.

**Personal Financial Assessment.**The first thing you need to addressed as a home buyer is your capability to pay back the loan you are planning to ask with the lender. As banks today has a lot of eligibility requirement for borrowers. As sure as it is, what these lenders’ number one question to you is how much is your gross family income. The minimum gross family income requirement differs from one bank to another. Below is the chart of minimum requirement for major banking institution in the Philippines. You also have to consider how much will be left in your pocket once the bank get it’s required monthly amortization.

The application and approval process. Banks differ in processing loans, however it all boils down to these 4 steps.

1. Application. This is the stage where all the needed documents are submitted. You also need to fill up the bank’s application form where the terms and conditions of the loan are stated.

2. Processing or Pre-qualification. When you have submitted all the required documents which includes all bank application form, employment information, latest Income Tax Return (ITR), bank statements, bank will start to check if you are qualified to avail the loan.Expect a call from the bank representative checking your financial capacity, they will ask questions about your assets, current monthly dues or liabilities and of course your monthly income and its source. The bank will also check the capacity to pay of your co-maker, so make sure to have a co-maker who will be able to pass the banks approval process.  The approval process will conclude if you’ll be able to pay the monthly amortization of the housing loan.

3. Annotation. If the loan is approved, the bank again will call to inform that your loan application is accepted. Also, bank will usually ask you to sign the Bank Loan Covenant which simply states them as the lender and you as the borrower to fully pay back the loan amount in time.

4. Releasing. Congratulations, the bank will release the loan you have applied.

SOURCE:

https://philrealtyglobal.com/how-to-acquire-house-thru-bank-financing-your-way-to-success/

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