Residing close to a business district is key to a promising life. The job opportunities are plentiful and diverse, the entertainment hubs are easily accessible, and — more importantly — the housing options are wide.
The residential markets in commercial centers, especially those in Alabang, are destined for decades of growth. The increasing presence of condominiums offers an exciting opportunity to own a piece of the city.
However, realize that you may face challenges when applying for a housing loan, and some of them are curveballs. Below are the surprises you might encounter when buying a condo for sale from portals such as rockwellprimaries.com.ph.
1. You may to process your loan application yourself.
Unless you seek financing directly from the developer, you are likely to handle the tricky process of mortgage application all by your lonesome. Expect this to happen even if your real estate agent swears to help you every step of the way.
When the moment of truth comes, the reservation agreement that you signed may stipulate that you shall be responsible for processing your bank or PAG-IBIG.
2. You might not be allowed to use PAG-IBIG.
Speaking of PAG-IBIG, it may not be a financing option for your condo purchase. The government accepts borrowers wanting to buy a condominium unit, but the development itself can be the hindrance.
When you applying for a PAG-IBIG housing loan, you’ll need to a title to comply with the requirements. If your developer has yet to provide you an individual Condominium Certificate of Title at the time of application, your request will be denied.
In the end, you may be forced to obtain financing through your developer or one of its partner banks. Since in-house and bank housing loans generally come with relatively higher interest rates, you may have to pay more money to proceed with your purchase.
But then again, working with a developer or a partner bank has its advantages. First, the process will be speedier, for the title bearing your name isn’t a prerequisite. Second, you can have more time to save cash to cover the cost of the title transfer.
3. You might have to save up some more.
While developers and their partner banks, as lenders, are more lenient to borrowers, they still observe their relatively lax requirements strictly. You won’t be rejected outright for lack excellent credentials, but you might only qualify for a lower loan amount.
If you find yourself in this situation, your best resource to avoid losing your initial payments is to put down more money. How will you do it is up to you for as long as you gather funds from sources your chosen lender considers acceptable.
4. You might not receive the necessary funds on time.
If your loan request is approved, there’s no guarantee that the funds will be immediately available. There’s a good chance that the money will be released late, so ready a plan B.
To avoid getting punished for something out of your control, secure an in-house loan with your developer. It may cost you a bit more since it’s a completely different mortgage, but the expenses will likely pale in comparison to late penalties.
Buying a condo is no joke. Think about your finances carefully, and don’t pull the trigger on your purchase until you’re positive that you can afford it come what may.
