Knowing your docus

As you prepare to avail of a home loan, there will be a few documents that you need to get acquainted with.

Some of these documents could either be a requirement of your bank that you will need to secure from your employer or a government agency, or it could also be a proof of payment—a mere piece of paper that tells you you’ve just crossed out one of the biggest goals you could have on your bucket list.

Local banking giant Metrobank makes it a tad easier for you as it already has, on its website, a list of documents that you might need to have to quickly secure a loan approval.

Here are some of them.

Income tax return

An ITR is among the most common requirements of financial institutions, simply because it’s a proof of income. This, therefore, is a good gauge of your repayment capacity.

Most employers can provide their regular workers with a copy of their ITRs. An employee should be able to receive from his or her company a Certificate of Compensation Payment/Tax Withheld or BIR (Bureau of Internal Revenue) Form 2316, as this will be serve as proof that your taxes were withheld.

Self-employed individuals receiving income from the conduct of trade or business and/or practice of profession can also secure their ITRs  as they are required to file their tax returns. The good thing nowadays is that you can do so online. For more details about this e-filing system, one can visit www.bir.gov.ph.

Certificate of employment

As the name of the document states, this piece of paper certifies that you are an employee of a particular company.

COEs would normally indicate how long you have been working for the company and in what capacity. Some meanwhile would also include your gross compensation, allowances, and all the bonuses you may have received in the last 12 months.

A COE therefore also serves as proof of income, and provides the bank an idea of your repayment capacity. Your employer should be able to readily issue you a COE and it normally takes a day or two for you to get one.

Monthly payslip

It’s that small piece of paper that any employee should be able to get every pay day. Also a proof of income, the payslip indicates your gross compensation and reflects all deductions that may include taxes, absences without pay, tardiness, loans, as well as your SSS/GSIS and Pag-ibig contributions.

Philippine Overseas Employment Administration (POEA) contract

This document is usually required by financial institutions for those who are “sea-based” or the seafarers. The employment of seafarers are covered by a Standard Employment Contract, which refers to the POEA-prescribed contract containing the minimum terms and conditions of employment.

Transfer Certificate of Title

For Metrobank, the TCT is one of the collateral requirements. Also known as the Deed of Sale or Deed of Absolute Sale, the TCT refers to the “property title of a land (with or without a structure built on it) with its geophysical location, measurement, registration number and name of the owner.”

A TCT, which should indicate Judicial Form No. 109-D, confirms the ownership of the land. To verify if the TCT is authentic, one can could check with the Registry of Deeds, which is assigned to keep records of every land title in a city or municipality.

Condominium Certificate of Title (CCT)

The CCT is also one of the collateral requirements listed by Metrobank, for those availing of a home loan for a condo unit. A CCT, which serves the same purpose as a TCT, should indicate the unit’s location, along with other details such as size; the developer of the condominium project; and the name of the unit owner, among others.

Sources: www.poea.gov.ph, www.metrobank.com.ph, www.bir.gov.ph, www.lra.gov.ph, www.provest.ph