Pre-Qualify Yourself and Prepare the Basic Documents

Are you planning to avail housing at a developer and wants it through financing?

To avail of housing or condominium at a developer you'll need to pre-qualify yourself first. It's very disappointing to clients if they found out that their target property requires a very high income requirement. So, before going to site viewing or house model viewing, we recommend to ask your property specialist regarding certain income requirements, though it's standard for us to ask for it before setting up the viewing schedule.

Here are the steps to pre-qualify yourself.


photo by: idahoreo.org


Are you employed, businessman, an OFW or with freelance job, because you need to provide income documents that is required by developer and financing companies. Much better if you have savings to pay the required down payment and avail of discount.

Why is it better if you can pay Spot Down Payment(DP) within 30 days or a week? To avail of housing, the most difficult part is paying the down payment in stretched payment because most of the time the monthly down is twice a higher than the monthly amortization, by having the budget for Spot DP, all you need to think is the loan approval.

Net Disposable Income
Using the Monthly Amortization of the property, let say Php. 10,000 per month, you can compute the Net Disposable Income requirement of financing institutions as follow:

At Bank Financing computed this way.
* NDI = Monthly Amort divided by 30%
* NDI = 10,000 / .30
* NDI = 33,333 NDI requirement


At Pag-IBIG Financing:
* NDI = Monthly Amort. divided by 40%
* NDI = 10,000 / .35
* NDI = 29,000 NDI requirement

The Net Disposable Income is an income after taxes, but the NDI is not a sole indicator wether you are qualified to avail of certain Loanable Amount, you monthly expenses, credit cards and other financial commitment is also a consideration especially at bank financing, as a result they are strict on background credit check. Another source of income would add to you credit score position.

Basic Documents

Many clients had missed some discounts because of late submission of required documents, some found out that they cannot provide the documents because they are busy or documents processing need certain time.

A part of pre-qualifying ourself is if we can provide at least the basic requirements, these are the Income Documents: Certificate of Employment and Compensation or Job Contract for Seafarer's and OFW, latest 3 months payslips and Income Tax Return (ITR) for local employee and latest 3 months bank statements. These are the important documents that may take sometime to be requested.

Being prepared can make it easy for your property specialist, but all these are for your benefit. Imagine the 10,000 discount if at the day of Reservation you can provide the documents along with Spot 10% Down Payment(DP) for Php. 1 Million price of property. Also, some developers have promos for one day reservation and payment of DP with complete documents.


Imagine, for Selling Price of Php. 1 Million the 10,000 discount could have been save for one of your monthly payments.



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About the Author

Jerome Morada

Realtor & Webmaster

Good day! I'm Jerome, your friendly Real Estate Broker with PRC License 0012399 and HLURB registration. Just sharing simple tips, please share if you find it useful! Thanks!

3 (mga) puna:

  1. Very informative and well written artcle. Good job! I'm a subscriber..:-)

    ReplyDelete
  2. HI Jereome,

    Do Pag-big consider your credit card debt when you are applying for housing loan? Thank you and nice article..

    ReplyDelete
  3. @GAB, No! Only existing Housing Loans and been a co-borrower. But Credit Card may affect in capacity to pay as it would be considered with your Income less Expenses Monthly to determine your Net Disposable Income. Thanks for viewing!

    ReplyDelete

 
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