Archive for the ‘Real Estate Finance’ Category

This can be filed as one of the frequently asked questions: “How can I apply for a Pag-IBIG Housing Loan?” This article addresses that question in a very straight-forward and easy-to-understand manner. So without further ado, here are the steps to take. Step #1: Attend The Loan Orientation. Officially, it’s called Loan Counselling Session. It’s [...]

Most real estate purchases and investments are made with the use of borrowed money; that is by mortgage loans. In an ideal world, these mortgages are paid on time and are eventually fully paid including all the interest incurred by borrowing the money. But unforeseen circumstances do sometimes happen, which lead to loan defaults and, [...]

This is a very common scenario: Juan thinks he likes the house shown to him by the real estate broker. On impulse, he pays for a reservation fee to hold the property in his favour without even considering how much he has to cover for the down payment. A few days later thinks about mortgage [...]

Real estate properties are seldom bought on one-time, spot cash basis. Many buyers usually finance their homes for a longer payment period, say 10 years and even 30 years. When purchasing a real property using long term financing such as Pag-IBIG Housing Loan, the buyer is usually asked to put a minimum down payment. This [...]

So you’ve finally decided to invest in real property using Pag-IBIG Housing Loan? You figured that it’s about time that you apply for that Pag-IBIG Loan after all those years of faithful contributions to the Pag-IBIG Fund. Now you ask yourself: “What are the requirements to avail of Pag-IBIG Housing Loan?” There are standard requirements [...]

A key concept in helping home buyers assess how much they can borrow to finance their real property investment is the Loan – To – Value Ratio. The Loan–To–Value Ratio (LTV for brevity) is the amount of the borrower’s loan divided by the appraised value of the property. LTV = (Loan Amount) / (Appraised Value) [...]

“What was I thinking?” a home buyer asks himself in disbelief after learning that he cannot actually finance his latest investment in an exclusive subdivision. What he should have actually asked himself was, “What was I not thinking?” Buyer Beware Buyers, buyers, buyers. You should think twice, thrice, a hundred times, before you actually invest [...]

Real estate properties are seldom bought on spot cash. The vast majority are purchased with a little down payment and mortgage loans on the balance. A mortgage loan is a form of secured financing; that is, the lender gives you the needed financing and in return you pledge the property as collateral. In a mortgage [...]