Delays in the condo loan process can seriously get in your way when it comes to purchasing the home of your dreams. They can be a huge frustration, preventing you from getting great promo rates, unit reservations, and move-in timelines when you’re investing in real estate.
Want to bypass these delays and quickly get a housing loan? You’ll need actionable steps and strategies to secure approvals fast. Take a look at this guide by Condo Arena for tips to improve your financial profile, prepare documents correctly, and strategically coordinate with lenders to accelerate this crucial loan process.
Strengthen your financial profile early
To secure speedy approvals, you need a strong financial profile that’ll assure your lender of your trustworthiness in paying back your housing loan. A financial profile is your lender’s basis for decision-making. By having a strong and reliable history of financial management, you assure your lender of your credibility, leading to faster approvals as you choose a unit from our Property List.
A strong financial profile for a housing loan
From credit scores to income documentation, here are the key components of a strong financial profile which you can improve upon to speed up approval:
- Credit score and history - Your credit score is a rating of your creditworthiness and your ability to pay off certain debts. A report on your score usually includes your credit history, active bank accounts, total debt, and history of repayments. In the Philippines, you can get your credit report and score from the Credit Information Corporation (CIC) for big financial applications, and even have your report corrected in case of any erroneous data.
- Stable employment and income documentation - Lenders also require proof of your stable employment alongside proper documentation of your income. These proofs and records may include your certificate of employment (COE), payslips, and income tax returns (ITRs), though these requirements will vary per lender.
- Manageable debt-to-income (DTI) ratios - Lastly, lenders will look at your DTI ratio to see if you fall within the typical threshold of 30–40%. By falling within this DTI range, you ensure your lender that you manage your debt well enough, in relation to your income.
Given how the rate of housing loans are increasing amid lower prices, it’s important to secure your investments as quickly as possible. With a strong financial history, you ensure greater rates of approval among lenders who perform risk assessments for these big loans.
Prepare and submit complete documents the first time
Another way you can streamline your condo loan process is by ensuring your documents are complete prior to application submission. Missing or incorrect documents can be a huge cause of timeline delays. By proactively preparing your files ahead of time and abiding by lender-specific requirements, you can drastically improve approval rates and ensure the success of your application.
Loan requirements checklist
Here’s an overview of required files and records commonly requested by lending institutions like Pag-IBIG and local banks:
- Valid IDs - These can include valid Philippine government IDs with your photo and signature, like your driver’s licence, passport, PRC ID, senior citizen card, and more.
- Income documents - These proofs of income and employment can include records like your COE or your Certificate of Employment and Compensation (CEC), along with your latest ITR and your payslips too.
- Collateral or developer documents - These housing loan documents will vary, but they can include a copy of the Condominium Certificate of Title (CCT) or Transfer Certificate of Title (TCT), an updated copy of your tax declaration or clearance, a vicinity map or sketch of your property’s location, among other required files.
Common document-related delays
Before you even conduct a Real Estate Comparison on your chosen properties, you’ll want to ensure your records are prepared for your coming applications. Here are common delays you’ll want to avoid as you prepare your files for submission and approval:
- Incorrect or expired IDs - Always double-check your government IDs to make sure they aren’t expired, or that your biometric information on these forms are correct. Errors on your IDs can cause confusion and eventually lead to delays.
- Mismatch in signatures or personal information - Remember to input the correct personal information on your condo loan application forms, and to ensure your signature is consistent across all submitted files too.
- Missing developer documents - Your lender will also want certain information from your property to verify developer reputation, confirm the building’s insurance requirements, figure out their zoning, and other considerations. These files may include your developer’s CCT or TCT along with additional appraisal reports.
- Unverified income documents - If your income records aren’t signed by your employer or verified by the BIR, your lender may reject them and require more up-to-date proofs, which can cause great delays in your timeline.
Digital tools like online banking portals, Virtual Pag-IBIG, and other web-based submission systems can help to streamline the verification process. But even with these convenient tools, you’ll still have to strengthen your financial profile ahead of time and prepare your files properly for surefire application approvals.
Always remember to consult with a property lawyer, experienced agent, or a financial adviser prior to your application too. By working with an industry expert, you can ensure you’re making the right choices and gaining deeper insight into your purchase before investing in real estate property.
Streamlining processes for investing in real estate
Enjoy an easy and straightforward housing loan experience when you take actionable steps towards streamlining your process. Remember to bring these tips away with you as you prepare all your condo purchase requirements:
- Review your income, credit, and debt history. Make sure you have a strong and well-documented financial profile prior to your application so that your lender can easily trust your ability to pay back your loan.
- Always double-check your documents. Take time to ensure all your files are correctly prepared and verified by the respective authorities so that you don’t go back and forth with your lender on the submission of your documents too.
- Consult with an industry professional. Have a second pair of expert eyes thoroughly review your requirements and application to ensure that all your requirements are complete and ready for approval.
Want even more tips to ensure a smooth condo loan process for your real estate investment? Then check out Condo Arena for more industry advice, and remember to utilize our comprehensive comparison tools for your next purchase.
