8 stages to home buying

Illustration by Steph Bravo

Much like everything else, there is an intricate process behind home buying.

If there are seven stages to a marriage or five stages to a break up, there are eight stages to realizing your dream home. At least according to a local banking giant Metrobank, a prospective homebuyer would usually go through eight stages before finally sealing that deal.

STAGE 1: REALIZATION

There comes a time when it finally hits you: I want/need a new home—whether you’re eyeing a lot, house and lot, or a condominium unit either for investment, as your actual home, a halfway house that’s closer to where you work or as a vacation home outside Metro Manila.

At this point, you become more aware of those huge billboards pitching a development as the most ideal sanctuary for you, or the flyers thrusted to your hands while you’re at the mall. You start paying attention as well to the ads that pop up in your social media accounts and online shopping website.

STAGE 2: INFORMATION

Once you have that realization of your need, there is now a more conscious effort to look for information to help you decide. According to Metrobank prospective buyers at this point would seek more   information about the location of the projects they’re eyeing, the floor plans and lay-out, amenities and features, prices, and even repayment terms.

Most would turn to their spouses and partners for advice, or to friends and officemates who may have recently bought new houses or condo units. And if they know one, buyers might likely start consulting real estate agents or brokers for a menu of choice developments that will suit their budget, lifestyle and preferences.

In the case of Metrobank, clients often consult branch employees  on the simple process of obtaining a Metrobank Home Loan to fund their purchase.

And at this day and age, one  would also naturally turn to the internet—websites and social media—for more information.

STAGE 3: SCOUTING

By this time, you’re ready to scout the market. Armed with the information you need, you start going around to visit showrooms or the actual sites. You can ask your real estate agent to schedule a “tripping” for you, so you’ll get to see either a project still in progress or a completely built up one where you can readily move in.

This will allow you to check the property in terms of actual location, lay-out, rooms, among others. You weigh the pros and cons of each choice and see if the price suits your budget. Once you have scouted the possible options for your dream home, it is at this point that you finally get to decide whether or not you will push through with the purchase of the property.

Your family members and real estate agent become your immediate spheres of influence, according to Metrobank.

STAGE 4: EXPLORATION

You made your choice and you’re ready to act on it. And so the question now is funding.

Filipinos can actually explore several options to finance their dream home: it can be their own bank, a partner bank of the real estate company, or the Home Development Mutual Fund (Pag-Ibig) if you’re looking for an affordable home loan.

Different banks will seem to offer the same thing.  It is very crucial therefore to do your research and read the fine print.  Make a list of product features such as ease and convenience, dedicated account officers, no hidden fees, competitive interest rates and other elements that will suit your needs.  You can easily check out Metrobank’s offers and promos through www.metrobank.com.ph.

STAGE 5: MAKING A CHOICE

The second equally crucial choice to be made is the bank where you will be availing of a home loan. After submitting all the necessary requirements and making a reservation payment for the property of your choice, you should already know which bank you will trust for this big-ticket investment.

A homebuyer might choose to go for a government housing loan, the partner bank of the real estate firm, or his or her own bank. Whatever your decision will be, it’s best to discuss with your agent and even your bank the terms and conditions of the loan and compare the repayment terms— interest rates, monthly amortization and payment due dates. Doing so will ensure that you get the most out of your investment.

What’s good is that most banks have become even more competitive in their offerings, attracting potential homebuyers with fixed interest rates and affordable monthly amortizations. It goes without saying that you should look for a bank with a solid, credible reputation like Metrobank.

As with other banks, Metrobank provides comprehensive information in its website along with a loan calculator that will give you an idea of how much you can borrow given your monthly salary and how much your amortization will be. Apart from consulting your real estate agent, best that you talk to a Metrobank home loan expert to get you through the process.

STAGE 6: APPLICATION

Once you’ve chosen your project and bank, you now start the application process for a home loan. Metrobank makes it easier for a homebuyer to avail of a loan with its simple documentary requirements.

One tip: Secure all the necessary documents and make sure that all information provided are updated and verified. Banks usually provide a checklist so best to make that your guide. Doing so will save you time from going back and forth the bank.

STAGE 7: WAITING GAME

Now you get to sit back and wait for the approval. Different banks have varying approval periods, but most usually, you’ll have your answer in a week’s time. Normally, one will be able to receive confirmation that his or her housing loan has been approved via SMS from the bank.

Your real estate agent, at this point, will also check if you have already received confirmation from the bank.

STAGE 8: FINAL ACT

You’re at the final stretch. You are actually one step closer to realizing your dream home. Once you’ve chosen your future home and your bank, the next step is to make the downpayment to your developer, usually through post dated checks. If you’ve chosen a pre-selling project, then you get to wait and anticipate excitedly for a few more years. But if you chose a ready-for-occupancy unit, then a downpayment can only mean that you’re now a proud owner of a new home.

Again, finding your dream home need not be such a hassle and a harrowing experience. All it takes is careful, thorough research, some pretty good planning, the financial discipline, and solid partner like Metrobank to see you through.