Written by: Rita Magallona
Nothing beats the exhilaration of discovering the real estate property that matches all your requirements. Whether it’s a condominium unit or a house and lot, there’s a thrill to finding your dream home and exclaiming, “I’ve found the one!”
But the question is: “Are you the one?”
Purchasing real estate is such a huge commitment, so it’s no surprise that getting a housing loan is like the first heady, nerve-wracking days of dating. You have to prove to your beloved that you’re exactly who they are looking for.
Likewise, banks and institutions like Pag-IBIG (Home Mutual Development Fund) have a long list of requirements for housing loans. This government-owned corporation has some pretty high standards for approving home mortgage applications.
Do you have what it takes to woo and win Pag-IBIG?
Find out the top three factors for getting your loan approved.
1. Are you earning a steady income?
Money is usually the last thing on your mind during courtship, but it is the first thing to consider when purchasing a home. In the case of Pag-IBIG, you have to be fit to work so you could pay off the loan. That means you have to be younger than 65 years old at the time of application and younger than 70 when the loan matures. In a nutshell, you’re not allowed to retire until you’ve paid off the loan in full.
It’s also not enough that you can and do work. You need to earn enough to pay off your monthly amortization and still live off what remains of your income. To know if you qualify for the amount you want to loan, Pag-IBIG looks at your monthly income. From that, they compute how much they can lend you.
You can try out the Pag-IBIG Housing Loan Calculator for a rough estimate of how much you can borrow based on how much you make.
2. Are you managing your money well?
A high salary is a big plus in applying for home financing, but you need the ability to manage that income well. Do you have a budget? Do you save for a rainy day, or do you spend like a one-day millionaire? If you do have debts, are you able to pay them off on time?
Just like any financial institution, Pag-IBIG does a credit background check to see if they can trust you with their members’ money. So, the best way to get a loan is to be able to pay off your debts, especially other banks, including Pag-IBIG itself if you availed of their Short-Term Loans. This way, Pag-IBIG is assured that you will pay off what they will loan you.
3. Are you faithful?
Faithfulness is a must in any relationship, romantic or financial. To qualify for a loan, you have to be an active member with 24 months’ savings into the Pag-IBIG Fund. This is not a problem for most employees because Pag-IBIG contributions are mandatory.
But what if you’ve changed jobs several times and you’re not sure if you’ve already made 24 contributions? Don’t worry; you can pay a lump sum for the remaining contributions. And if you’re self-employed, an OFW, or an entrepreneur, you can still make voluntary contributions.
So, are you qualified for a Pag-IBIG housing loan?
If yes, it doesn’t stop there. Once Pag-IBIG approves your loan application, you still need to maintain the relationship by paying off your monthly amortization. To maximize your professional growth and earning power, make sure you boost your body’s natural defenses and improve your home’s indoor air quality.
Are you ready to take on the challenge of buying a home? If so, look up the other requirements for getting a housing loan from Pag-IBIG and take the first steps to becoming a homeowner.
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Ohmyhome helps Filipinos find their dream homes, all while making sure each real estate transaction is complete and is an efficient and enjoyable experience.