Buying Guide


RE/MAX Advantage Iloilo

The very first thing to ask yourself when you buy a house and lot or any property is: why?

Think of the reasons and how they will affect your life. Are you tired of your landlord and you want to ditch renting?

Do you want to pay your own mortgage?

Is your house too small for your growing family and it’s time to let it go for a new one?

Would you like a larger property?

There are a lot of questions to ask. And answering them will give you a clear sense of why are you buying a property. The same questions will help you decide what kind of property to buy as well as what amenities to look for when buying one. All of these will help you choose the best property for yourself and your family.


A property you can call your own is a great investment. The best part of this is that real estate is a least risky way to obtain greater return on your investment. But like any other investment, it requires financial stability and time. You need to have all your heart and dedication in going through the process of acquiring a property and you need to have a stable income to comply with the financial requirements. Asking yourself if you can cope with all of these demands is necessary when you start investing. Now, are you ready to invest?

When you finally decide to purchase a property, it is always good to make sure that you have all the requirements needed. It is best to file them in one place as early as now.

FILING THE REQUIREMENTS

One of the first things to do in preparation to buying a property is to collect the basic requirements— especially important financial documents. Create a folder where you can put all your files.

Here are the basic documents it should contain:

  • Proof of income (at least 3 months)
  • Proof of billing
  • Tax returns
  • Tax Identification Number (TIN)
  • CEC (Certificate of Employment and Compensation)
  • Employment Contract
  • At least two photocopies of government-issued identification cards (passport, driver’s license, SSS ID)
  • Post dated checks (PDCs) for the down payment
  • Financial statements, bank account statements, credit card bills, investments, insurance policies and other proofs of your financial capacity
  • House and lot loan (Pag-ibig)


Most, if not all, sellers and lenders check your credit score to verify your capacity to pay and to identify what property you can buy and at what cost. So it is good to check your credit score first before you take the next step in home acquisition. Check outstanding balances from previous loans. Make sure that all your financial liabilities are settled.


Investing in a new property is not the best time to acquire other assets that require your financial capacity. It is not a wise move to change careers during this period as well. Be careful with your finances. Make sure that you have financial stability before buying a property. Now is not a good time to make sudden career changes or large purchases. You want to approach your property purchase from a position of financial stability.

You must be aware that buying a property needs a lot of work. There are important financial decisions to make, a lot of issues to settle and a lot of paperwork to do. This requires time and effort. So knowing that there are experts who can help you in all of these may give you a great relief. Our experts will guide you as you walk through the step-by-step process of acquiring your dream property. Not only that, they are also equipped with knowledge in the local real estate scene to guarantee you that you will get the best deals and offer there is to date.

To help you choose the best real estate professional, here are some factors you must consider:

Choose an experienced real estate agent. Make sure that you choose someone who is experienced in completing transactions and who is knowledgeable about the latest trends in the real estate market today. It is good to interview them before asking for their help. Through this, you will be able to assess the agent’s knowledge and capacity to help you with your endeavor. It is also best to ask for a list of properties he or she has sold for your reference.

  • Choose someone who is available all the time. Always ask the agent how dedicated he or she is to do the work for you. A good agent should dedicate his or her time and effort to complete the transaction in the best way possible. The same agent should be available at night or during weekends when you are free to check properties that you wish to acquire.
  • Choose someone with credentials and educational background. It is relieving to know that your agent is well-trained and educated in the field. So get an agent that has great credentials and has a good background on the area you want to acquire. People who hold good designations in the field are always the best choice.
  • Choose an agent who is a good listener and responds to you attentively. Rapport between a buyer and his or her real estate agent is very important. The best agent is someone who understands your concern and suggests the best ways to address it. A good business relationship will surely bring a smooth and successful purchase of property.  After making all the preparations and getting an expert to help you, it is now time to find the best property to acquire.


Look for properties in the neighborhoods, villages and subdivisions that you know. You may want to take a walk or a drive in these communities to give you a sense of how it is look like to live here. You might also want to know which properties are available in these areas. Creating a list may help.


You might also want to ask friends or people you know about some available properties. They may know someplace that fits your lifestyle. You may also ask your real estate agent for suggestions. Tell the agent your requirements and he or she may have someplace in his list to suggest to you. Add them in your list.


From your list, try to pick the properties that interest you. Ask your real estate agent to schedule you for a visit. And consult to the agent about the processes and the potential terms when you decide to buy the property. These will help you decide what to buy.


Once you had visited all the properties that interest you, you may have someplace that you wish to acquire in your mind already. Pick out that property and ask your real estate agent to help you make a deal that is acceptable to the seller. A good real estate agent will try to examine the potential costs and expenses of the property you want to acquire. In that way, he or she can help you draft more advantageous terms for you.


Now once you and the seller have come to the terms and agreed to them, an initial agreement and a deposit should be made. The best agreement is always a legal arrangement between you and the seller of the property.

Here are some tips and advices you should keep in mind to keep track and simplify the process:

Always keep a written record of everything. Put every agreement in record so all the terms are clear to you and to the other party. If the agreement is done verbally (usually counter-offers and addendums), recording it with the permission of the seller is always a good idea. Then try to transcribe it and create a written agreement to be signed by you and the seller. This will help you with all the paperwork in the process of purchasing. Duplicate copies and make sure you have some spare copies of the thing.

Submit to the agreement. Since you have legalized everything, it is good to follow the timeline of your contract with the seller. Stick to the agreed schedule. Meet all the requirements on time so every negotiation will follow smoothly. You real estate agent is there to guide you and update you in this step-by-step process.


All property acquisition has either a title company or an attorney that will serve as a closing agent. The closing agent usually holds your deposit escrow. He or she will also examine the history of the property to ensure that the title is clear. You will know from the closing agent’s research what restrictions and limitations you will have (if there’s any) once you have acquired the property.


There are different implications including the legalities and the taxation of estate. It is important to have a clear picture on what are your prospects and reservations as the new title holder of the property. You may want to consult a tax adviser, an accountancy expert or a lawyer on the terms and processes of holding the title.


Once an offer has been closed, you now need a licensed property inspector to look at the property within the timeframe of the contract agreement. Our real estate agents can help you find the best inspectors to assess and audit the site.

Once the inspections have been done, you can either go a step closer to acquiring the property or either you or the seller may request renegotiation in terms of the contract, usually in the price of the property.


If the agreement is restrictive upon financing, the property needs to be seen by a licensed appraiser. Appraisers are expert in determining the value of the property in terms of the measurements, the rental sales, the building cost and other things. The appraiser will identify the value for your lending agency. Appraisals are done so that your lending institution can confirm if their investment in the property you are acquiring is precise and accurate.

During these processes, it is vital to keep in touch with your lender. This will keep you updated with the additional documents and requirements needed so your home loan application will be approved. It is equally important to check once in a while with your lender if the loan will push through especially two weeks before you are closing the deal with the seller.


Some properties are conditional upon approval of a specific association. If you are buying properties under this condition, make sure that you request the important documents from the seller as soon as an agreement to purchase between you and the seller has been reached.

In applying to a specific association, make sure that you have filled out all the information needed so there will be no delays in the application process. See to it that the documents and the fees for processing have been settled. Once your application has been assessed, you are required to meet with the association for an interview. The association may ask for a certificate of approval before you move in to the property. So be sure to acquire that from your seller. Your closing agent may also need theoriginal copy of this certificate so it will be reflected in the region’s public records.


If you are acquiring the property under a loan, the lender or the association may require you to buy insurance on the property. The price depends on your lending agency or the association but usually base on value of the property you acquired.

When you are getting insurance for the property, consider increasing your deductible because it can make a difference in your premium. Asking your insurance agents about discounts can help a lot. Usually discounts are given to properties with safety features. We can also help you find experienced and well-sought insurance agents under our networks of experts.


It is not time to move in your new property. But before doing so, check the property once more and do not forget to close all of the loop holes and unfinished businesses:


Do a walkthrough and inspect the property a day before moving in. Make sure everything works and everything is the same as the last time you have seen it. Make sure that there were no things left behind and everything included in your purchased are intact and are ready to be used.


Our real estate agent can provide you a list of home service and utilities in case you need them before the closing. We are also good to assist you whenever something happened even in the last stage of your home acquisition.


Once everything goes well, it will come to a successful close. The closing agent will formally iron a settlement statement from all the parties involved. This statement includes the summary of the financial transactions made in the process of acquisition. You and the seller are required to sign this as certified by the closing agent. The seller should also surrender to you all the keys to the property as well as other important information (if you still don’t have all of them) during the closing. If you are acquiring the home via financing, all documentation required by the lending agency of the association should be duly signed. Make sure to attend the closing, if not inform us and we will be happy to make some arrangements for you.

Finally, move in happily.


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