If you’re buying a residential property it’s best to engage the services of a professional real estate broker. More often than not, many home buyers go solo and hunt potential deals on their own; but unless you know the market well, this could be disadvantageous and risky.
All but naturally, these sellers’ agents would primarily be serving their clients’ interests and the commissions they could derive out of a sale. To level the playing field, you get to have an expert on your side to look after your interests as well.
Without professional help, you’re prone to commit common real estate mistakes which could be costly as real estate transactions typically involve a significant amount of money. Also, a home purchase is a complex and time-consuming process requiring expert assistance in order to proceed smoothly.
In a nutshell, here are the critical things you’re likely to miss out, if you go just on your own buying a residential property.
A precise reality check of your financial resources
Would your monthly income qualify for a mortgage loan and allow monthly amortizations for the long-term? Do you have enough savings or can you raise the amount for a down payment? A professional broker can help you answer these critical questions for an honest-to-goodness assessment of your financial capacity to buy a home.
Right choice of bank lender and type of housing loan
Philippine banks, in general, offers two types of housing loans: the conventional housing loan and the flexible housing loan. In a conventional housing loan, borrowers pay fixed amortizations for a specific time period, commonly 20 years for a minimum of P500,000 loan. A flexible housing loan is linked to a current banking account which enables the owner to reduce the interest charges through deposit payments and through repayment of principal at any time. In both cases, it is important to keep in mind that your loanable amount will all depend on your net income or your household’s, if you have a co-buyer.
A real estate broker helping you decide on the type of housing loan and bank lender can also assist you in choosing the best loan interest rate. Each Philippine bank offers different terms, and you’d be in a position to get the best rates with a bigger down payment.
Smooth paperwork and documentation process
In applying for a home loan, which entails lots of paperwork and documentation, the devil is in the details. Real estate brokers already have the templates that could help you out in the tedious and time-consuming steps of preparing the necessary documents banks require from borrowers. An experienced broker can likewise help you itemize all the costs involved in your home purchase, especially those items that are often overlooked by first-time home buyers, such as closing costs and expenses in moving into your new house.
The burden is heavier for self-employed home loan borrowers or those that derive income from a business. They would need to submit more information and supporting documents regarding their taxes, income and profits, in addition to other pertinent documents like business permits.
The big picture on the home you really need
Buying a home is an emotional process which can lead to a confusion between wants and needs. A seasoned real estate broker with an objective view of the big picture can guide you to the home just right for you.
Home buyers’ desires often drift toward a bigger house with a spacious lawn and backyard. Most buyers, without an impartial broker as adviser, won’t realize that such choices would mean longer commuting times, as these choices are in all likelihood farther away from employment centers.
Happily though, there are estate developments now like the South Park District designed to satisfy buyers’ desires for spacious living and near not only to workplaces but also to lifestyle centers. This master-planned development combines a mix residential condos, a regional mall, and office buildings. Anchored by a sprawling central park, the South Park District should win the approval of buyers and their brokers alert on avoiding the missteps in home buying.