Lumina Sessions: How to Apply for a Bank Housing Loan

Are you planning to avail a house and lot anytime soon through bank financing but you don’t have any idea how to start or do it? No worries, we got you!

Let’s join Van, our Lumina Marketing Officer from Lumina Silay as she guides us in applying for a bank housing loan, the requirements that we need, and some tips on how we can get a higher chance of approval for a home loan.

The things you should know before applying for a home loan

Here are the things to remember before applying for a bank home loan:

Each bank has their own method in evaluating if the borrower is “credit worthy.” This is the reason why you can be approved at one bank but can be disapproved to the other one. But although banks have different methods in approving a home loan, all of them are using the 5Cs of Credit in their decision making:

1. CHARACTER

­The bank will determine if you are a responsible borrower. It helps to discern your ability to repay a loan particularly with regards to your credit history.

Your credit history or credit report will show all of your debts from the past seven (7) to 10 years. It provides insight into your ability to make on-time payments, as well as your length and mix of credit.

2. CAPACITY

Are you capable of reasonably taking on more debt? It measures your ability to repay your new debt based on your current obligations.

3. CAPITAL

Are you making a down payment? It shows lenders you are serious and committed to the credit that you are seeking. For a business loan, this means that you invested your own money to the business. Meanwhile, for individual loans, this means having a down payment when applying for a loan or mortgage.

4. COLLATERAL

Do you have any assets to put up against a loan? It provides Assurance to the bank in case you are unable to pay for the loan. For example, if you secure your home loan, the TCT will be your collateral. This means that if your default in your loan, the bank can possess the property.

5. CONDITIONS

How’s the economy? Conditions refer to the current economic health of the market and the industry your work in. The following are the conditions they are trying to assess when you are acquiring a bank loan:

• Is the country going through an expansion or a recession?
• Are your prospects for advancing in your professional life currently growing or shrinking?
• What are the current employment trends, and are there layoffs expected?

Make sure to keep these characteristic in mind as you try to better understand your credit situation and work toward your financial goals. If you can prove that you have all the qualities in the 5Cs of Credit, you can put yourself in a position to obtain the financing you need to build the life that you want.

Bank Home Loan Eligibility

If you are eligible to purchase a property, you are also most likely qualified to apply for a bank housing loan! Below are the qualifications that you need to possess in order to be approved for a bank home loan:

• Must be a Filipino citizen or a Philippines resident.
• At least 21 years old, but not more than 65 years old upon loan maturity.
• Earning a combined monthly income of at least Php 40, 000.
• Has been continuously employed for at least two (2) years.
• For the self-employed, must be operating a legitimate and profitable business for the last three (3) years.

Standard documents when applying for a home loan

Once you are eligible for a bank home loan, make sure to prepare the following basic documents that you will need for the application:

• Photocopy of one (1) valid ID matching the application details
• Birth Certificate
• Marriage Contract (if applicable)
• CENOMAR or Certificate of No Marriage if your Civil Status is Single

Additional requirements might also be needed depending on your current employment.

Bank home loan requirement for LOCALLY EMPLOYED

Please prepare the following requirements if you are currently working in the country:

• Latest Income Tax Return or BIR Form 2316
• Latest three (2) months’ payslip
• Certificate of Employment with Income (COEI)

Bank home loan requirement for SELF EMPLOYED

Please prepare the following requirements if you are self-employed:

• Photocopy of Audited Financial Statements for the last two (2) years with latest ITR
• Bank Statements or Photocopy of Passbook for the last six (6) months
• Certificates of Business Registration from DTI or SEC, Articles of Partnership or Articles of Incorporation (whichever is applicable)
• Business Background or Company Profile

Bank home loan requirement for OVERSEAS FILIPINO WORKERS

Please prepare the following requirements if you are currently working as an OFW:

• Proof of Remittance for the last three (3) months
• Latest Crew Contact, is sea based
• Consularize Certificate of Employment with Income (COEI) or latest three (3) months payslips

And these are the basic things that you need to remember before you can get a housing loan through bank financing. We hope that you find this episode of our Lumina Sessions informative and be able to help you out in applying for a bank home loan and making you dream home a reality.

But if you are still searching for a community and house and lot provider for your dream home, Lumina Homes is one the best subdivisions in the market that can provide you the #BahayGoals you are dreaming of!

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Hurry, take advantage of this promo and schedule a site tripping now or you can also visit our website to check our 360 degree Virtual Tour and make your home reservations online.

See you again next week everyone!