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Money Matters

How to Get Your Home Loan Approved

Applying for a home loan? Make sure you prepare all the necessary requirements.

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Photography: Pixabay | Unsplash

Achieving one’s dream home is no easy feat. Aside from the work involved in the construction or renovation of a property, you must also have enough funds to sustain such a milestone project. If you’re one of the many who are considering applying for a home loan, keep in mind that banks have standard application and evaluation processes that are easy to follow and understand.

At BDO, there are loan officers who help applicants go through the step-by-step application process. A dedicated loan officer will be assigned to handle an account and make sure the applicant will get the home he’s always dreamed of. While many think applying for a home loan is an exhausting process, it’s quite simple as long as you follow the steps. Let these tips and reminders enlighten you:

1. Check if you’re eligible to apply for a home loan.

To be able to apply for a home loan, you need to be a Filipino citizen or a foreign national with a stable source of income who is at least 21 years old but not exceeding 70 years old at the end of the loan term. He or she must also appoint an attorney-in-fact who will act as a loan administrator in his or her behalf.

2. Choose the most convenient way to apply.

If you’re interested to apply for a BDO Home Loan, there are three channels you can look into when applying. An easy way would be to go online and visit www.bdo.com.ph. You can also visit a BDO branch near you or visit BDO-accredited developers and brokers.


3. Prepare the needed documents and make sure these are correct. Applicants must submit the following as accompanying application documents:

Basic Documents

  • A completely filled-out application form
  • Photocopy of one valid photo-bearing ID matching the application details
  • Marriage contract, if applicable

 

Any of the following Income Documents

  • If locally employed, you need to prepare the latest Income Tax Return (ITR), your latest 3 months payslip, and a Certificate of Employment with Income (COEI). Meanwhile, those who are self-employed must prepare a photocopy of Audited Financial Statements for the last two years with latest ITR, Bank Statements or Photocopy of Passbook for the last six months, a Certificate of Business Registration from DTI or SEC, Articles of Partnership or Articles of Incorporation (whichever is applicable), and Business Background or Company Profile.
  • If you are employed abroad, you need to submit a Proof of Remittance for the last three months, latest Crew Contract (if sea-based), and a Consularized Certificate of Employment with Income (COEI) or latest payslips covering three months.

 

Collateral Documents

  • Make sure you have a photocopy of the title, lot plan with vicinity map, and a photocopy of tax declaration.

 

4. See if you meet the required minimum income.

In order to qualify for a BDO Home Loan, make sure you have the required minimum gross income of P50, 000 per month or its equivalent value in US Dollars.

5. Specify the property you want to buy.

The bank will assess the property that the borrower is planning to buy. A bank representative or an appraiser will conduct an ocular inspection on the property to assess and determine its market value. The loanable amount will depend on the appraised value of the property to be purchased.

6. The approval process may take around five to 10 days.

Once the applicant submits the complete application requirements, the processing and evaluation will take at least five working days for Metro Manila residents and 10 working days for those residing outside Metro Manila.


7. It helps if you will submit the complete application requirements.

To facilitate faster loan processing, make sure you provide the complete requirements and correct application information. It will also be great if you will ensure the availability of all parties involved—the borrower, the spouse, the co-borrower/, and whichever is applicable for credit investigation.

8. Take note of the payment terms and interest rates.

BDO offers Home Loan packages based on a client’s needs. The bank offers interest rates as low as 5.50% which is fixed for a year and flexible payment terms of up to 20 years.

9. There are payment options you can consider to make payments manageable.

BDO assures clients that making payments can be easy on the pocket as they offer different payment options: a 60-day grace period wherein payment for the first amortization will be made 60 days after the release of the loan and Interest Only wherein payment of interest only for the first six months, then payment for the monthly amortization will start on the seventh month

10. You can always reapply if your application doesn’t get approved

If in case your loan does not get approved, you can reapply anytime. Your new application will again be subjected to standard processing and evaluation of the bank.

For more details and if you have specific questions, click here.

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