First-Time Home Buyer Checklist: 4 Signs You’re Ready
December 29, 2022
Owning a house has a lot of advantages. You get to live at your own terms and enjoy the freedom to design your space to your liking. You have a property investment that increases in value over time. Moreover, you have a legacy that you can leave to your children. This ensures that they have a secure place to stay in the future. If you’re considering to buy a property like a house and lot for sale in Cavite but you’re unsure if you’re ready to take that big step. Here’s a first-time home buyer checklist to know if you’re ready to take the next step.
You have enough savings and a good credit standing
Make sure you’ve set aside enough money for the down payment. Real Estate Developers like Pinnacle Homes offer low down payments. Typically ranging from 10% to 15% payable from 6 to 24 months (depending on the type of unit).
It would be a wise move to have enough money saved up to cover several months of the down payment. This way you won’t be solely reliant on your next paycheck. And you’ll have a comfortable buffer should you encounter unforeseen difficulties.
And if you’re planning to apply for a housing loan, be aware that financing institutions do their credit investigation to know if they can trust you to pay them back. Considered as red flags are bad credit history like unpaid credit cards or bouncing checks. Is your debt under control? Do you have existing loans? Do you have unsettled credit card bills? These are factors that may affect your home loan application. By paying all your debt and outstanding credit cards you improve your credit standing. And more importantly, home loan approval.
You have stable source of income
Once the down payment has already been settled, the remaining balance must be paid immediately either thru cash or a housing loan. Financing institutions like Pag-IBIG require income documents to check the buyer’s capacity to pay.
They usually ask for the following documents: Certificate of Employment and latest pay slip (for locally employed), Audited Financial Statement (for business owners), and Consularized Job Contract with compensation (for OFWs and Seafarers). In case your income is not enough to cover the loan, you’ll have to appoint a co-borrower for the loan, like your spouse, who’ll also need to submit the income documents.
A good way to gauge if you can afford the mortgage is if the Pag-IBIG monthly amortization does not exceed 35% of your gross monthly income.
You’re ready for more responsibility
If you’re a renter, you rely on the landlord or property manager to fix issues related to the property. But once you’re a homeowner, you’re now responsible for any repairs or for tapping service and maintenance workers if needed. You can also hire contractors for home improvements as long it’s allowed in the property’s deed of restrictions.
Aside from the monthly amortization, and utilities like water and electricity, there are also other obligations like the real property tax (RPT), and homeowner’s association dues which is for the maintenance of the community’s common areas.
You’re prepared for a long-term commitment
Buying your first home means settling down in a city throughout the length of your mortgage. This can be for 20 years or more in your Cavite house and lot for sale, depending on your loan term. So make sure you are prepared to take on this long-term financial obligation. The good thing is that all monthly payments are credited to your home mortgage and not wasted on rent.
Also choose a place that’s ideal for future growth — where you can thrive whether your single, a couple, or a family with kids. Aside from accessibility to your workplace, consider proximity to other points of interest. Are there nearby schools, hospitals, commercial establishments, and transport terminals? Further, consider moving to communities with amenities like parks, playgrounds, and basketball court. These offer added value by integrating features that promote social and physical wellbeing which is key to raising a family.
Ready to take that next step?
If you’re all good with the items mentioned and you’ve already made up your mind about home buying, then you’re ready to invest in a house and lot. There are special promos for pre-selling projects where you can get great deals. It’s wise to take advantage of these offers as you get to choose from a wider inventory and avail of its introductory prices.
You can check out Pinnacle Homes’ house and lot for sale for your options.
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