Buying a house is one of our priorities as a new couple. For us having our haven means comfort and security.
Buying a house is not as easy it may seem and, some things need to consider.
With traffic and safety issues going on, location is our top priority when choosing a house.
An ideal house that we have in mind is near our workplace and accessible to the hospital, schools, market, malls, and police station.
The price of that property might be high, but it can cut down our transportation budget in the long run.
Living near the hospital and police station also provides us security, especially during emergency cases.
- The reputation of the land developer
When buying a house, we invest our hard-earned money with it. Doing so means we need to check everything about the property including the land developer to avoid putting our money into the drain.
A credible land developer maintains their standing. That is why they are keen on every project that they make. They executed timely and deliver what they promise to their clients. They ensure the quality of the real estate, from the material and design aesthetics. They also provide a comfortable and lavish lifestyle to clients. Most of these developers include security, clubhouses, internal access roads, fitness center, and playgrounds.
Transacting with a reputable developer also means fewer chances of encountering fraudulent activities and scams.
Budget is another major thing that we consider in buying a house. As a new couple, we need to make sure we can afford the monthly mortgage fees if we choose bank finance and yearly real property tax, association fees, and property insurance.
To make sure that we can pay the property, we need to secure our income and compute these fees accurately.
Tip: If you are not good at computing like us, there are online real estate calculators that you can use.
- Bank Financing or Pag-IBIG Housing Loan
If we plan to mortgage the property, we have two options to consider, bank financing and Pag-IBIG Housing Loan.
The two might seem the same, but they have different requirements, loan amount, terms, and interest.
Pag-IBIG Housing Loan has few restrictions and requirements for applicants compared with bank financing. Banks conduct background checks and require to submit supporting documents.
The maximum loanable amount for the Pag-IBIG Housing loan is up to P6,000,000 or 80% of the total accumulated value (TAV). Bank financing varies. It may be the exact amount or 70-80% of the appraised property value.
For interest rates, banks offer low-interest rates with a fixed rate for about 1 to 5 years. Pag-IBIG Housing Loan, on the other hand, offers fixed pricing for up to 30 years.
- Property Title
Lastly, when buying a house, we also need to make sure that the property title is authentic and clean.
To do that, we need to make sure to check the following:
- Check the quality of the paper used
Forms used in property titles are printed by the Banko Sentral ng Pilipinas and have a similar texture to a bank check.
Tip: Held the title against light, if you can see the Land Registration Association watermark through the paper that title is authentic.
- Verify the real state agent or seller’s identity
With the rising fraudulent issues in the real state industry, it is a must to check the background of the agent or seller. To do so, we can contract the developer to know if the agent is registered to them.
If the seller and house are not associated with a developer, we need to check if the seller owns the property. If the property title shows that the owner is his parent, we need to be assured that all of his family members agree to sell the property.
- Double-check the description of the property on the title
We need to make sure that the description of land area specified in the property title matches the actual land area when surveyed.
- Check if the real property tax is updated.
To be sure that the seller’s property tax is updated, we can check the former at the Assessor’s Office of the municipality where the property is situated.
If it is not updated, the seller needs to update the payment and make a notarized agreement that he will do so.
Buying a house needs to do a lot of leg work and research. Until now, we are still searching for a property to buy. Hopefully, this year amidst the pandemic, we can find one. If we do, we will share our experience with you!