Thursday, January 30, 2014
When acquiring a home or any real estate property, weighing your financial situation and considering different financing options is a must. Even if you have cash on hand to pay for the property, it may be more beneficial to get a home loan.
The first step to getting a home loan is to check different loan options from different banks to find suitable terms for your needs. Next, you have to go through the stringent process of applying for the home loan. Here are some common home loan requirements you may encounter in your application. However, take note that these requirements may vary depending on which bank you’re applying with.
To be eligible for a housing loan application, there are some requirements on age, income and employment.
You should be at least twenty-one years of age at the time of loan application and not exceeding sixty-five upon loan maturity. Income requirements may vary, but most require a family gross income of at least 50 000 pesos per month.
You should also have been continuously employed for at least two years at a reputable company.
For other income sources, such as a business or professional practice, most banks require at least three years of profitable business operation or practicing the profession. These eligibility requirements are just to ensure the bank of your stable income sources and ability as a paying client.
If you’re eligible for a home loan application, it is time to prepare the required documents. Some common documents required by banks include…
- Completed home loan application form.
- Statement of accounts.
- Reservation agreement, if buying from a developer.
- A government-issued ID with your photo and signature.
- If married, a copy of your marriage contract and your spouse’s valid ID.
- For employed applicants and spouses, a certificate of employment and latest Income Tax Return or ITR.
- For applicants and spouses in a business or a professional practice, business registration documents and latest audited financial statements with the BIR stamp.
- For OFW applicants and spouses, a certificate of employment or job contract duly authenticated by the Philippine consulate office.