5 Things to Consider Before Buying Your New Home
Published: October 31, 2014 | Updated: March 16, 2020 | Posted by: Moneymax | Personal Finance
Who would not be excited at the thought of owning a new house?
If you have the money, it could be all fun, but if you think it’s going to be a long and a big responsibility, there should be a lot of considerations to reflect on.
Take time to review these reminders:
Table of Contents
1. Credit Management
Do you think you can be approved for a home loan? Do you think you have a good credit history?
Sometimes, we think that having no credit history is a good thing because you are not indebted to anyone. Little did we know that it is a gauging factor of how good of a borrower you are.
When you apply for a home loan, your bank will request for any proof of billing. This should be a utility bill under your name, credit card billing statement, or an existing loan to know how much is left after all the bills from your income and to measure if you can pay the future home amortizations as well.
2. Home Loans Comparison
Compare all the home loans in the market to know if you have the best deal fit for your budget, time and needs. Usually, you have to consider the monthly interest rates, review the tenure of your loan, along with other factors. Your home loan is one major part of the overall cost of your new home.
The location of your future property is as important as the property itself. A strategic property is usually more expensive, but it’s worth every peso. Imagine your life if your new home would be near your working place, your kid’s school, market, church, shopping mall and above all, is a safe location. You don’t want to buy a home that is flooded all throughout the year or a place prone to landslides, right?
4. Potential Neighbors
The neighborhood is a strategic consideration on buying your new house. These people can also give you information on the previous owners, the property itself and later, future friends! Start on the right foot by getting to know your future neighbors. Reach out to them when you visit you potential house and have a chat with them.
Most banks in the Philippines will finance 90 percent of the total price. If the property costs PHP1 Million, then you should have more than PHP100,000 on-hand for the downpayment and all the related expenses like government documents. Don’t forget to read everything before buying it.
With a goal to help Filipinos lead healthier financial lives, Moneymax regularly publishes tips and tricks on personal finance and lifestyle, among many other topics. For more finance-related news and articles, follow Moneymax on Linkedin.