Tuesday, December 11, 2018

First-time home buyer? Consider these important tips

The prospect of buying your own house is probably one of the most exciting financial step that you will ever make in your lifetime and careful planning is very important. In preparation for the realization of this goal, consider these important tips to help you prepare for home ownership. 

Determine the true cost of the house. The monthly amortization fee is usually the largest part of the total expense related to the purchase of a real estate property. However, this is oftentimes not the full cost related to buying and maintaining a new house. As a general rule, the principal, interest, real-estate tax as well as insurance payment should not exceed 30% of your gross income. You also have to allot budget for homeowner association dues and utility expenses such as water, electric, phone and internet services. You may also need to buy new appliances and furniture for your new house. Over the long run, repair and maintenance cost should also be take into consideration. 

Save for the 20% down payment.  If you don’t have a 20% down payment, then you may have to take a separate loan to finance this payment which could put a lot of strain on your finances. You can avoid this entirely by saving up for the 20% down payment. This is actually a good practice for the realities of home ownership, which requires you to be extremely smart with your money. Home ownership comes with a lot of advantages. However, there are significant costs involved. Simply learning how to save and make better choices with your money is vital preparation for home ownership and the 20% down payment savings project is a great way to learn how to be smart with your finances. 

Buy a house that will meet your family’s needs. To get a home that will make you happy, don’t count on a quick purchase.  Step back and make certain the house you are considering have some level of proximity to the essentials and services that are important to you and your family. Nothing beats a site visit. View the housing unit you are considering at different times of the day to get an idea on what the housing unit and the neighborhood are like. Spend some time checking out local amenities as well as transport systems available in the area of your future home.  You may also want to look for a house that’s walking distance or relatively near a grocery store or at least a convenience store as well as a park or some other kind of significant green space.

Bottomline, be sure to invest in a property only after you have done significant preparation. Another important preparation towards home ownership is choosing the lender that could meet your house financing requirements.

Philippine Savings Bank (PSBank) has recently set a 1-day credit decision on home loan application for the purchase of brand new condominium units and properties from accredited developers, in line with its commitment to simplify banking transactions for its clients. Some of PSBank’s accredited developers are as follows: Federal Land, Robinsons Group, Megaworld, DMCI, Alveo, Avida, Rockwell SMDC, among others.

“While real estate investment is always an exciting step, we understand that the process towards homeownership requires a lot of preparation especially for first time home-buyers. To help simplify the process for our clients, PSBank set a 1-day home loan decision that we would afford our clients more time to focus on preparing for the essentials of home ownership,” PSBank Senior Vice President and Marketing Group Head Noel Tuazon said.

Aside from a 1-day credit decision for condos, PSBank Home Loan with Prime Rebate allows customers to earn rebates or savings when they make advance or excess payments on their monthly due. Rebates earned from advances/excess payments are computed on a daily-basis-including weekends and holidays, starting on the date the payment is posted and credited every due date. In addition, PSBank Home Loan with Prime Rebate also features flexible terms as well as convenient payment channels through PSBank Mobile & Online platforms, automatic debit arrangement from a PSBank deposit account, post-dated checks, over-the-counter at any PSBank branch and via PSBank, Metrobank and BancNet ATMs nationwide.

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