When purchasing a property, whether it’s a condo or a house and lot, it is crucial to be well-prepared with the required documents. These requirements not only ensure a smooth transaction but also validate the legitimacy of the buyer’s and seller’s intentions. Below is a comprehensive guide on the necessary documents for different financing schemes and employment types, as well as the importance of verifying the legitimacy of your requirements.
General Importance of Legitimate Requirements
-The legitimacy of requirements is critical in any real estate transaction. Submitting falsified or incomplete documents can lead to delays, disqualification, or legal repercussions. Developers, banks, and other financing institutions carefully verify all submitted documents to ensure compliance with their policies.
When making a reservation, buyers are required to present all original documents to authorized personnel. These documents will be verified, scanned, and returned immediately to the owner. This process ensures the authenticity of the documents while protecting the buyer’s ownership rights.
Requirements for Each Financing Scheme
1. Pag-IBIG Financing
– Pag-IBIG is a popular choice for Filipinos due to its affordable interest rates and long repayment terms. Below are the typical requirements:
A. Housing loan application form
B. Four (4) pcs 1×1 picture (white background)
C. Pag-IBIG Loyalty Card (New)
D. Latest 24 months contributions (ESAV Form)
E. PSA Birth Certificate or Marriage Certificate (if married)
F. CENOMAR (if single)
G. Verified TIN Number
H. Three (3) valid IDs (printed with specimen signatures)
I. Certificate of Employment with Compensation (stating: “This is for PAG-IBIG Housing Loan Application”)
J. Latest 3 months Payslips (Certified tru Copy)
2. Bank Financing
– Banks are known for their more stringent approval process but offer flexible terms for qualified buyers. The following documents are required:
A. Housing loan application form
B. Four (4) pcs 1×1 picture (white background)
C. Verified TIN Number
D. PSA Birth Certificate or Marriage Certificate (if married)
E. CENOMAR (if single)
F. Three (3) valid IDs (printed with specimen signatures)
G. Certificate of Employment with Compensation
H. Latest 3 months Payslips (Certified tru Copy)
I. Latest 3 months bank statements
J. Latest Income Tax Return (ITR) for Business Owners
K. Proof of billing or utility bill
3. In-House Financing
– In-house financing is the easiest to apply for since developers directly manage the process. However, it often has higher interest rates. The requirements are:
A. Housing Loan application form
B. Four (4) pcs 1×1 picture (white background)
C. Verified TIN Number
D. PSA Birth Certificate or Marriage Certificate (if married)
E. CENOMAR (if single)
F. Three (3) valid IDs (printed with specimen signatures)
G.. Certificate of Employment with Compensation
H. Latest 3 months Payslips ( Certified tru Copy)
I. Latest 3 months bank statements
J. Latest Income Tax Return (ITR) for Business Owners
K. Proof of billing or utility bill
L. Post-dated checks for monthly payments
Special Cases for OFWs, Seafarers, and Freelancers
For Overseas Filipino Workers (OFWs) and seafarers, additional documents are required due to their employment status:
A. Employment contract (authenticated by the Philippine Consulate or POEA)
B. Proof of remittances or bank statements (3-6 months)
C. SPA (Special Power of Attorney) authenticated by the Philippine Embassy
D. Passport and/or Seaman’s Book (for seafarers)
Virtual Assistants and Freelancers
– Freelancers and virtual assistants must show proof of consistent income to qualify for financing. Required documents include:
A. Certificate of engagement/contract from clients
B. Invoices or payment receipts from clients
C. Bank statements showing client payments (3-6 months)
D. Latest Income Tax Return (ITR)
E. Verified TIN Number
Reservation Process: Document Verification
Upon reserving a property, buyers must present all original documents to authorized personnel. These documents will be carefully verified for authenticity. The process includes:
1. Scanning: Authorized personnel will scan all original documents for records.
2. Immediate Return: After verification and scanning, all original documents will be returned to the buyer.
3. Compliance Check: Personnel will ensure all submitted documents are complete and legitimate before proceeding with the transaction.
This process not only secures the transaction but also protects both the buyer and the seller from potential fraud.
Understanding and preparing the required documents for your chosen financing scheme is essential for a successful real estate purchase. Always ensure that your documents are legitimate and complete to avoid unnecessary delays. Remember, presenting original documents for verification during the reservation process is a crucial step to secure your dream property. Stay organized, follow the guidelines, and work only with trusted professionals to ensure a smooth journey to homeownership.