If you find yourself browsing through this article, we can already say that you have plans of buying a home. Let us guide you on what you need to consider before buying your dream home.
Explore the surrounding area
Except if you are already familiar with the area you are moving to, take time to walk around the area surrounding your investment, there might be illegal settlers around that might lead to unwanted circumstances or if you are near small rivers or creeks that might result to flooding during the rainy season. Also if you are near an airport, a fire station, hospital or train track (especially near the Makati-Manila border) expect to hear planes, sirens and ambulances on a daily basis. Make sure that you’re not too close to an agricultural area as well, as it may generate odors and kick up dust and other airborne problems.
The last thing you want to discover after buying a house and lot is that things don't work properly, particularly those amenities that dragged you to buy the house in the first place. There are, of course, the basic checks, such as making sure that the gas, water and electricity all work. Then there are the more fundamental things like whether the subdivision is properly maintained by the Home Owners Association.
If, for example, the swimming pool is one of the things that you like best about the subdivision, make sure that it is cleaned regularly and open at the hours that you want access.
Find a trusted person who will take care of your investment
Since this is your first time, you will need a broker to guide you through the buying process. Real estate brokers have the experience and professional knowledge that can help you get the best deal possible.
Real estate agents will locate several homes that fit your needs, help you select the correct home, negotiate the terms and conditions of purchase, and generally help you through the process.
They will also help you find the mortgage loan with the best terms for your situation. Closing services will organize and manage the paperwork to assure a smooth transaction.
First-time buyers are usually a bit nervous, but relying on professional advice can ease the tension. Tell the professionals what you want, and let them help you.
Finally, the process of buying your first home does not end when you move in. On top of the mortgage, which you need to pay every month, there are other expenses to take care of such repairs, association fees, insurance -- the list goes on. The rule of thumb is not to spend more than 30 percent of your monthly pay on paying off mortgage loan; anything higher than this and you will find it difficult to cope with your other expenses.
Explore other financing options
You may explore available financing institutions and try to compare the interest rates. However, financing your home purchase generally falls under these three categories: in-house financing, Home Development Mutual Fund (or also known as PAG-IBIG), and bank financing.
Prepare the documents such as pay slip, employment certificate, application for a loan and special power of attorney (SPA) if you are entrusting someone like a relative to process the papers on your behalf.