HOME BUYING TIP

STEP BY STEP HOME BUYING GUIDE

Step 1: Assess Your Financial Capacity

1. Budget Evaluation: Determine how much you can afford. Consider your income, savings, and any debts.

2. Financing Options: Explore options like bank loans, Pag-IBIG Fund (for Filipinos), or in-house financing from developers.

Step 2: Identify Your Preferences

1. Location: Choose a location based on factors like proximity to work, schools, and amenities.

2. Type of Property: Decide whether you want a house and lot, condominium, or townhouse.

3. Size and Features: Consider the size, number of rooms, and other features you need.

Step 3: Property Search

1. Online Research: Use property listing websites to find potential homes.

2. Real Estate Agents: Consider hiring an agent for access to more listings and professional advice.

3. Site Visits: Schedule visits to properties you're interested in.

Step 4: Due Diligence

1. Verify Titles: Ensure the property has a clean title and no legal encumbrances.

2. Check Permits: Confirm that the property has the necessary permits and is compliant with local regulations.

3. Property Inspection: Have a professional inspect the property for any structural or maintenance issues.

Step 5: Negotiate and Make an Offer

1. Price Negotiation: Discuss the price with the seller or agent. Consider the property's condition and market value.

2. Letter of Intent: Once agreed, submit a Letter of Intent to purchase, which may require a reservation fee.

Step 6: Secure Financing

1. Loan Application: If you're taking out a loan, complete the application process with your chosen financial institution.

2. Approval Process: Wait for loan approval, which may involve credit checks and property appraisal.

Step 7: Legal Documentation

1. Contract to Sell: Review and sign this document if buying from a developer.

2. Deed of Absolute Sale: For secondary market purchases, review and sign this deed.

3. Notarization: Have the contract or deed notarized.

Step 8: Payment and Transfer of Ownership

1. Down Payment: Pay the agreed-upon down payment.

2. Balance Payment: Pay the balance according to your financing arrangement.

3. Transfer of Title: Ensure the transfer of the title to your name, which involves paying transfer taxes and registration fees.

Step 9: Post-Purchase Activities

1. Tax Declarations: Update the tax declaration under your name at the local assessor's office.

2. Utility Transfers: Transfer utilities like water and electricity to your name.

3. Move-In Preparation: Plan your move, including any renovations or furnishings needed.

Step 10: Maintenance and Upkeep

1. Regular Maintenance: Keep your property in good condition to maintain its value.

2. Property Taxes: Pay your annual real property taxes to avoid penalties.

Additional Tips:

• Legal Advice: Consider consulting a lawyer for legal advice, especially for contract reviews.

• Property Insurance: Look into property insurance for additional protection.

• Stay Informed: Keep up with any changes in real estate laws and regulations in the Philippines.

Remember, the process can vary slightly depending on whether you're buying a new property from a developer or a secondary market property. It's also important to be aware of the cultural and legal nuances specific to the Philippines.