In the Philippines we have three common types of financing in buying properties: bank financing, in-house financing and Pag-IBIG Financing. Depending on your developer of choice or property, some financing might not be applicable.
For all my clients, my first consideration in recommending the type of financing is their financial capability. As a practitioner, I recommend a financing that fit to clients as I have observed that clients are looking forward to get the best or bigger houses without considering its requirements and often times, it disappoints them after being educated about the income requirements of the property.
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If you are working on a certain budget or have a preferred monthly amortization then never make a reservation without proper briefing from your agent. A good agent can give a good advice- just you need to choose a good one. (Choosing a good agent is the next of this series).
For now, here is: The Checklist in Buying Properties - Pre-Qualification and Choosing a Financing.
Most, if not all banks place high consideration on credit history for housing loan applications. And likewise, a bouncing check gives a negative impression. As a buyer your basis should be the Net Income which is all income after expenses or obligations. Though banks have strict pre-qualification process, clients themselves must have due diligence and be honest with regard their financial capabilities.
Am I making you hesitant of investing in a property? Well, we need to face the truth. When it comes to any contract agreement, the bank or developer gets all the advantages in case of delinquency or non-payment and so the only thing to avoid forfeitures or foreclosures is thorough and careful pre-qualification process.
Hope this helps.
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