How do you prepare for a housing loan in the Philippines?

1.    Step One: Evaluate Your Finances
2.    Step Two: Fix Your Credit Score and Improve Savings
3.    Step Three: Shop around for the Best Loan Offer
4.    Step Four: Prepare All Necessary Documents
5.    Step five: Apply for a Housing Loan

Buying a new house is one of the biggest life decisions you can make. For most people, however, the ‘buying’ part is often the hardest part of the whole process. 

You might have been eyeing a desirable house and lot for sale in Rizal like Forest Farms and Highlands Pointe in Angono or Amarilyo Crest in Taytay, but without financial instruments such as housing loans, buying such properties from well-known real-estate developers such as Aspire by Filinvest will only remain a dream.

If you think you need some financial assistance in buying a house, you don't need to worry because there are financial instruments that can help you. That being said, here is a short guide on how to get a housing loan in the Philippines.

Step One: Evaluate Your Finances

Before making any moves, the first thing you should do is analyze your financial situation. This involves looking at how much money you have in your bank account, how many other financial obligations such as other loans you still have to pay, your credit score, your salary (and your spouse’s as well if you’re married), and a number of other factors. 

You should also look at your life plans in the short to medium-term future. Are you planning to go on an overseas trip? Or maybe you’ve been wanting to buy a car for your family. What about other children? All these things have to be taken into consideration before deciding to pull the trigger on a housing loan. The last thing you want to do is to spread yourself too thin financially. 

Only by taking this initial step can you really give yourself a good chance at being approved for a housing loan.

Step Two: Fix Your Credit Score and Improve Savings

Now that you’ve analyzed your financial situation, the next step involves fixing your credit score and improving your savings. Your credit score reflects your ability to pay off loans. Having a low score is really not a good look for you and your chance to secure big loans such as housing, car, and business loans. The higher it is, the better. 

Clean up your credit history and improve your credit score by paying bills on time. Settle any remaining credit card balances and pay off unpaid loans. Once you’ve submitted a loan application, diligent lenders might check your credentials again, so don’t do anything financially irresponsible while the process is ongoing. 

Aside from credit-related information, what’s inside your savings account will also be considered a factor by lenders. Try to bump up your savings as best you can before applying for a housing loan.

Step Three: Shop around for the Best Loan Offer

Now that you’ve settled your balances and are now financially capable of buying a house, it is time to look for the best loan offer

Different banks and lending institutions will have different loan terms and interest rates thanks to a number of different factors. Make sure to review all the available options from a number of reputable institutions before settling for the right one.

Step Four: Prepare All Necessary Documents

As with all applications, documents are an essential part of the process and not preparing them before applying for a loan will almost always give you a hard time. Requirements will vary from one lender to another, so you will need to make some inquiries and research in order to know the full list. 

Here are some core documents for your reference: 
●    Loan application form (some lenders make this available online)
●    Government-issued IDs (passport, driver’s license, voter’s ID, NBI/police clearance, senior citizen’s ID, OFW ID, etc.)
●    Proof of Income (certificates of employment, payslips, income tax returns and bank statements).

Make sure to compile all the required documents in a single ledger or folder so that you don’t misplace them when the time comes. Once pressed for time, preparing these documents will become a hassle. Don’t forget to do it in advance. 

Step five: Apply For a Housing Loan

Once you’ve filled out the application form and have all the documents ready, you can finally head to your chosen lender and apply! 

Make sure to be responsive and cooperative for a smoother experience. Keep your phone lines and online channels open so that you avoid delays and you’re notified immediately when your application makes progress. 

Key Takeaway

Now that you know how to get a housing loan, that dream house and lot for sale in Rizal you’ve been eyeing is now within reach. Diligence and careful attention will go a long way in this endeavor, so follow the above steps properly. If you aren’t convinced or have more qualms, you can always consult an expert

If you are interested in looking at some homes you can purchase, check out the following Aspire by Filinvest’s properties: Mission Hills, Amarilyo Crest and Highlands.