In order for an OFW to invest in property especially through bank financing would require a representative. A Special Power of Atty (SPA) need to be consularized, required income documents need to be submitted on time and of course the payment of DP either cash or thru wire transfer is not an easy task to coordinate.
To share with you, here are my:
Steps in Buying Properties for OFW.
Pre-qualify yourself to income and document requirements of your preferred property; do not reserve without proper briefing from your agent. Ask your specialist regarding accredited banks of developer and the required documents.
Decide and reserve the unit with the help of your attorney- in-fact and your agent; coordination and communication gives a smooth process. Being abroad, you may ask for Reservation Forms from your Agent that can be sent thru emails, fill it out and email back with your valid ID’s to submit to the developer for formal reservations, your personal details in the forms is very important so preferably the principal buyer has to fill out the form. The attorney-in-fact could do it but still need details of principal buyer.
As principal buyer you need to decide on what bank to apply your loan with, then you may request copy of SPA forms. You should have an idea or you may ask on current interest rates, the easiest bank loan approval process or if you have preferred bank to were your loans be applied then it’s better.
Print two copies and fill out the SPA Forms, along with the forms should be a valid identification of attorney-in-fact and the buyer himself. Developer has it’s own form and also needed to be consularized because your attorney-in-fact will transact and sign documents also. In other consuls, they allow one SPA Form be consularized and that is okay but have it two if possible.
The witness’ signatures and copy of identification are also required in the SPA Form like any other legal documents. (a) In case of combined Income for a couple to meet the requirements of bank, a separate Joint and Solidary Undertakings (JSU) need to be consularized also.
Fill out the form with complete attachment, have it notarized in your host country then consularized at our consul. A consularized SPA or JSU form has a red ribbon.
I would recommend that the consularized forms are scanned and emailed in advance to the attorney-in-fact, so he/she will have proof to show in case of immediate transactions, original copy will take days or week before it can be delivered to the Philippines.
Follow the due dates of your official computation. The loan applications for your loanable amount in banks need to be processed right after the spot down payment. Some developers in economic housing are the ones processing the loan application with their accredited banks but clients may opt to process it with their preferred banks for faster approval. Developers submit client loan application to the bank by batch and clients who opt to personally process with the help of the attorney-in-fact is the faster way. However, at high end projects, clients process their loans with their banks.
Be updated with the loan application status and aim for the faster approval. A postponed approval and signing may cause delay, and it is possible that by the time the client is ready to finalize the loan application the bank would require updated requirements. The approval and signing of documents in banks can be done by attorney-in-fact and there may also be a processing fee, directly paid to the bank which is usually equivalent to 3% of the loanable amount. After approval, the bank will issue a bank guaranty that you will submit to the developer.
House construction is next after loan approval. Be updated with your agent and attorney-in-fact. Once transfer of title is complete, the title is kept by the bank and will be given to the client after loan pay off.
Hope this helps future buyers!
Thanks for reading, pls share if you find it useful!