By: BAJARealEstate.ph
Buying your first home is a major milestone, and it’s important to navigate the process carefully. Here’s a step-by-step guide to help you make informed decisions and avoid common pitfalls.
1.)Determine Your Budget
• Assess your financial capacity, including your savings and monthly income.
• Consider additional costs such as taxes, insurance, and maintenance.
•Use a mortgage calculator to estimate your monthly payments.
2.) Get Pre-Qualified for a Home Loan (If Financing)
Choose a financing option:
• Bank Loan – Lower interest rates but strict requirements.
• Pag-IBIG Housing Loan – For members with affordable terms.
• In-House Financing – Offered by developers with less paperwork but higher interest.
• Prepare requirements like valid IDs, proof of income, and credit history.
3.) Identify Your Ideal Location and Property Type
• Consider factors like work commute, schools, hospitals, and accessibility.
• Decide on the type of property:
• Condominium – Ideal for city dwellers but comes with association dues.
• House and Lot – Offers more space and ownership rights.
• Townhouse – A balance between affordability and space.
4.) Find a Trusted Real Estate Agent
• Work with a licensed real estate agent to get expert guidance.
• Agents can help negotiate prices, review documents, and ensure a smooth process.
5.) Visit and Inspect Properties
• Schedule site visits to check the actual condition of the property.
• Verify infrastructure, amenities, security, and potential for appreciation.
• For pre-selling units, check the developer’s reputation and past projects.
6.) Verify Property Legitimacy
• Check the Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT) at the Registry of Deeds.
• Ensure the property has no liens, encumbrances, or disputes.
• Verify if property taxes are up to date.
7.) Make an Offer and Negotiate
• Once you find the right property, negotiate the price and payment terms.
• Secure a Letter of Intent (LOI) and pay a reservation fee if required.
8.) Secure Financing and Pay the Down Payment
• If using a bank or Pag-IBIG loan, submit the necessary documents for approval.
• Once approved, sign the Loan Agreement and start paying monthly amortizations.
9.) Sign the Contract to Sell and Deed of Absolute Sale
• Review the Contract to Sell (for pre-selling units) or Deed of Absolute Sale (for ready-for-occupancy homes).
• Ensure all terms, payment schedules, and property details are correct before signing.
10.) Pay Taxes and Fees
• Documentary Stamp Tax (DST) – 1.5% of the selling price.
• Transfer Tax – 0.5%–0.75% of the selling price.
• Registration Fee – Based on a sliding scale set by the Registry of Deeds.
• Notarial Fee – Typically 1%–2% of the selling price.
11.) Transfer the Property Title to Your Name
• Submit required documents to the Registry of Deeds for title transfer.
• Secure a new Tax Declaration under your name at the local Assessor’s Office.
12.) Move In and Enjoy Your New Home!
• Settle utilities like electricity, water, and internet.
• Familiarize yourself with community rules and security measures.
Pro Tips for First-Time Homebuyers:
✅ Check the credibility of the seller, developer, or agent.
✅ Always read contracts thoroughly before signing.
✅ Prepare for unexpected expenses (e.g., home repairs, furnishing).
✅ Keep all transaction documents organized and secure.
Would you like help finding a home that suits your needs in Metro Manila? We can guide you through the process!
