Step by Step Guide before Moving in to your New House
Are you ready to take the First Step in Buying Your First Home?
Many first time Home Buyers do not have idea on the step by step procedures on getting their first Home. Some would ask me if after paying the downpayment, can they already move-in? partially yes, but it is still one of the pre-requisite before move-in. Here, I will elaborate the step by step process from inquiry to actual move in to your new Home.
Step 1. Contact the Seller either the Licensed Real Estate Broker or the Accredited Real Estate Agent
Probably, you've stumbled in a website, online advertisement or facebook campaign and you've seen a housing project that caught your interest. If the project really got your interest, you then need to contact the seller regarding the details of the project as a first step in your quest for your first home. Please be advised that it is very important to deal only with Licensed Real Estate Brokers and Accredited Agents for you to be assisted well.
Step 2. Schedule a site viewing with your Broker/Agent.
To check the property that you are going to buy, it is advisable that you, yourself have seen it, for you to decide whether you want to buy it or not. If you're outside the country, working abroad, you can delegate a representative, either your parents, siblings or relatives. Please note that there are available free tripping schedule of various developers.
Step 3. Choose and Reserve a Unit
From the available inventory of the developer, choose the specific unit that you wanted to reserve. Seek assistance with your broker/agent to choose wisely. They can guide you on the block and specific location of the unit based on the site development plan of the project.
After choosing the unit, it's now time to complete the reservation by submitting your initial requirements i.e. valid ID, payslip/job contract to the site or reservation officer of the developer. You then need to fill up the Buyer's information sheet, stating your personal details, source of income, etc... You will also sign the Reservation Agreement as evidence of your unit purchase.
Step 4. Submission and completion of Requirements
Within 30 days after reservation, you need to submit the requirements needed. The requirements depend on whether you're getting a housing loan thru Pagibig, bank or in house financing. The requirements also vary if you're an OFW. Since most of our clients are thru Pagibig Financing, I listed here basic requirements if you're getting a housing loan thru Pagibig.
Locally Employed
- MSVS (Membership Status Verification Slip)
- Certificate of Employment w/ Compensation Original
- Latest Premium Payments (HDMF - 2 years orig.)
- Latest 1 month Payslip original
- Latest Proof of Billing / Cert. of Tenancy / Valid ID
- Company ID (photocopy)
- I.D. Pictures 1 x 1 ( 5 pcs )
- Latest W2 / ITR Clear copy
- Marriage Certificate/Birth Certificate/Spouse ID (clear copy)
- Any Govt I.D. (2 valid ID) (clear copy, back to back)
- Tax Payer's Identification Card (clear copy)
- Sketch of Residence Address
OFW
- MSVS (Membership Status Verification Slip)
- Latest/Authenticated Copy of Job Contract
- Latest Premium Payments (HDMF - 2 years orig.)
- Latest 1 month Payslip / latest Remittances orig.
- Proof of Billing / Cert. of Tenancy / Valid ID
- Latest Passport ( photocopy )
- I.D. Pictures 1 x 1 ( 5 pcs )
- Latest W2 / ITR photocopy
- NSO Marriage Certificate/Birth Certificate (clear copy)
- Any Govt I.D. (2 valid ID) (clear copy, back to back)
- Tax Payer's Identification Card (clear copy)
- Sketch of Residence Address
Step 5. Paying your Monthly Downpayment
Most of the housing projects at the start are selling at pre-selling stage, meaning, the house is for construction, not yet ready for occupancy. The advantage of this is that, the downpayment is stretch to an average of 12-24 months to pay, so it gives the buyer flexible payment terms that suits his/her budget. In contrast, ready-for-occupancy units, have shorter downpayment terms.
Once you have completed paying the downpayment, your documents is now ready of housing loan process.
Step 6. Loan Processing
Loan processing is being done after paying the full downpayment/Equity and the house is already built by the Developer. It may take 3-4 months to process the loan either thru Pagibig or Bank financing. It may be shorter but consider this as the average processing time for you to meet your time expectation.
Step 7. Loan Take Out
Your loan is taken-out and payment will be released by Pagibig or Bank. Developer will inform you of loan take-out and guide you on the next steps. The date of your first monthly amortization, is one (1) month after the release of your loan.
Just for clarification, I have received some comments that they thought, the loan will be given to them by Pagibig or bank. It is not that way, the Bank or Pagibig will pay the Developer and you as a borrower, will pay the Bank or Pagibig thru monthly amortization.
Step 8. House Inspection
After fully paying the downpayment, and the housing loan was released, you will now be scheduled for house inspection which we often called as "Punchlisting". Check if your unit is ready for move-in.
If there are minor repairs or retouch , another re-inspection date will be set until house is acceptable.
Step 9. Move-In
After accepting the unit, you are now ready to move-in. But wait, you are still bound to pay move-in fees, that cover, applications and deposits for electricity, water, lightings, association dues etc.
After that, you're now totally ready for Move-in. Congrats to your own new Home.
I hope that this simple step by step guide help you understand fully the process of acquiring your first home.
Regards,
Ralf Roger C. Tagao
CPA
Real Estate Broker
