Welcome to home-ownership! Here’s your step-by-step guide in buying a house.
Phase 1: Preparation and Planning
- Determine Your Budget:
- Calculate your affordable monthly payments.
- Factor in down payments, closing costs, and future expenses (e.g., property taxes, association dues, maintenance).
- Get pre-qualified or pre-approved for a home loan from a bank or Pag-IBIG. This will give you a clear understanding of your borrowing capacity.
- Define Your Needs and Preferences:
- Identify your ideal location, property type (house, condo, townhouse), size, and desired amenities.
- Consider your lifestyle, family needs, and future plans.
- Find a Reputable Real Estate Agent (That’s Me!):
- I will help you navigate the market, find suitable properties, and handle the complexities of the transaction.
- Property Search:
- We will explore various listings that match your criteria, schedule property viewings, and assess potential homes.
Phase 2: Property Selection and Offer
- Due Diligence:
- Thoroughly inspect the property for any defects or issues.
- Verify the property’s legal documents (title, tax declarations, etc.) to ensure it’s free from encumbrances.
- For pre-selling properties, review the developers credentials, and past projects.
- Make an Offer:
- We will draft a formal offer to purchase, outlining the price, terms, and conditions.
- Negotiate with the seller to reach a mutually agreeable deal.
- Reservation Agreement:
- Upon acceptance of your offer, you’ll typically sign a reservation agreement and pay a reservation fee to secure the property.
Phase 3: Financing and Legal Processes
- Secure Financing:
- Submit your loan application and required documents to your chosen lender.
- Await loan approval and comply with all lender requirements.
- Contract to Sell/Deed of Absolute Sale:
- Once loan approval is secured, the seller’s lawyer will draft the Contract to Sell (for installment payments) or Deed of Absolute Sale (for cash payments).
- Review the contract carefully and seek legal advice if necessary.
- Payment and Closing:
- Make the required down payment or full payment as per the agreed terms.
- Complete all closing requirements, including signing the necessary documents and paying closing costs.
- Transfer of Title:
- The Deed of Absolute Sale will be registered with the Registry of Deeds to transfer the property title to your name.
- Pay the necessary transfer taxes and registration fees.
- Tax Declaration and Occupancy:
- Obtain a new tax declaration under your name from the local Assessor’s Office.
- If applicable, secure an occupancy permit from the local building official.
- Homeowner’s Association (HOA) (If Applicable):
- If the property is in a subdivision or condominium, familiarize yourself with the HOA rules and regulations.
Key Documents You’ll Need:
- Valid government-issued IDs
- Proof of income (payslips, ITR)
- Bank statements
- Marriage certificate (if applicable)
- TIN (Tax Identification Number)
- PAG-IBIG number if using PAG-IBIG financing.
Important Reminders:
- Due Diligence is Crucial: Never rush the process. Thoroughly inspect the property and verify all legal documents.
- Seek Professional Advice: Don’t hesitate to consult with lawyers, financial advisors, and other experts.
- Keep Records: Maintain copies of all documents related to the transaction.
- Communication is Key: Stay in close contact with me and your lender throughout the process.
I’m here to support you every step of the way. Please don’t hesitate to ask any questions you may have.
Additional Tips for You:
- Personalize the Guide: Add your contact information and a personal message.
- Provide a Checklist: Create a checklist of documents and tasks to help buyers stay organized.
- Offer Resources: Provide a list of reputable lenders, lawyers, and other service providers.
- Follow Up: Stay in touch with your buyers after the sale to build long-term relationships.
- Explain the difference between pre-selling and re-sale properties.
