Buyer's Guide
Buying property is one of the most significant financial commitments you’ll make, and whether it’s your first purchase or you’re a seasoned buyer, it’s essential to approach this decision thoughtfully.
Why Do You Want to Buy?
Consider your motivations for purchasing a property:
- Are you looking to move from renting to owning?
- Have you outgrown your current home or want a change of environment?
- Are you aiming to invest in real estate, perhaps with a rental property or as a long-term asset?
- Would you prefer a bigger yard, a different neighborhood, or a shorter commute?
Understanding your reasons will help you choose a property that meets your needs now and in the future.
Is Your Income Ready?
Property ownership can be a rewarding investment, providing both personal value and financial growth. If your income has grown or stabilized, it may be the right time to consider building equity through real estate.
Prepare Your Finance Folder
Before you start your property search, evaluate your financial capacity. Consider whether you’ll be paying in cash or applying for bank financing. If financing, start by building a budget, checking your savings, and reviewing your income stability. It’s also wise to have a financial folder that includes:
- Bank account records
- Investment records
- Credit card statements
- Loan documents (e.g., auto loans)
- Latest payslips
- Income tax returns from the past two years (for financing applications)
- Insurance policies, stocks, and other investment accounts
If using bank financing, check with a local bank or financing institution to know how much you can borrow, as this will directly impact your budget and choices.
Understanding and Building Your Credit Score
In the Philippines, your credit score is a key factor banks consider when approving home loans. This three-digit number, based on your credit history, shows lenders your reliability in repaying loans. A strong score improves your chances of approval, qualifies you for better terms, and gives you more negotiating power.
Checking and Improving Your Credit Score
To view your credit score, visit creditinfo.gov.ph or an accredited credit bureau. Boost your score by managing your finances well:
- Start Early: Use your first credit card wisely; good habits help build your score.
- Pay On Time: Timely payments prevent penalties and keep your score strong.
- Stay Organized: Track your due dates to avoid late fees and maintain a healthy score.
Get Prequalified
Connect with a trusted loan officer early to understand your options and set yourself up for success. Even if you’re not completely ready yet, a prequalification conversation will clarify what steps to take to reach your goal.
Want help finding a reliable loan officer? Send us a message, and we’ll introduce you to experienced professionals who can guide you through every step of the process.
Buying property in the Philippines involves several important financial decisions, understanding legal requirements, and managing paperwork. Having a knowledgeable professional on your side can make this process smoother. We’re here to guide you through every step and can even provide access to exclusive property listings.
Here are some key factors to consider when selecting your real estate professional:
- Experience: Look for a full-time agent with a track record in handling transactions similar to yours.
- Local Knowledge: Ensure they’re well-acquainted with your preferred areas and market trends.
- Availability: Ask about their availability, including weekends, to ensure they can accommodate your schedule.
- Credentials: A good agent keeps up-to-date with industry standards and holds relevant certifications.
- Responsiveness: Prompt communication is essential when purchasing property.
- References: Request a list of previous clients or properties sold for additional confidence.
- Compatibility: Choose someone who listens carefully to your needs and makes you feel comfortable.
Take a Property Tour and Evaluate Options
Once you have a good sense of your budget and preferred location, start by browsing Our Listings. Take your time exploring available properties and then schedule a visit to see your top choices in person. A property tour allows you to evaluate the condition, layout, and surroundings up close, while also giving you a chance to spot any potential issues that might not be clear from photos or descriptions.
Narrow Down Your Choices to a Few Properties
After seeing several properties, narrow your choices down to a few that fit your budget, needs, and preferences. Focus on properties that meet your criteria for size, location, amenities, and condition. Consult your real estate agent for advice on which properties have the best potential for appreciation and investment.
Conduct Due Diligence
It’s essential to verify the legal and physical status of the property you’re interested in. Conduct due diligence to ensure that:
- The property has a clean title and is free from encumbrances.
- The land is titled and properly registered under the Land Registration Authority (LRA).
- There are no legal disputes, unpaid taxes, or other complications with the property.
- The property is within your budget, including any necessary repairs or improvements.
Your real estate agent can help you gather these documents and ensure everything is in order.
Make an Offer: Once you’ve found your ideal property, your agent will help you draft a competitive offer. Negotiate price, payment terms, and other inclusions like furniture or fixtures. This stage sets the foundation for the next step in securing your new home.
Closing & Moving In
Congratulations! You’re in the final stretch of your property purchase journey. After all the preparations and negotiations, you’re just about ready to call the property your own.
Finalizing the Deal: Once your offer is accepted, confirm the payment terms, secure your financing (if applicable), and process any necessary taxes and fees to complete the purchase.
Sign the Deed of Sale: Both you and the seller will sign the Deed of Sale, which legally finalizes the transfer of ownership.
Take Possession: After signing the Deed of Sale and settling the agreed payments, you can take physical possession of the property—this means you can move in, receive the keys, and transfer utility accounts to your name. Keep in mind that the official transfer of the title at the Land Registration Authority (LRA) may still be in progress, but you can already start enjoying your new home.
Register the Property: Submit the signed Deed of Sale to the Land Registration Authority (LRA) to officially register the property in your name. This step ensures that the property is legally yours. You can check our Property Title Transfer Guide.
Congratulations again! You’ve successfully purchased your new home. Don’t forget to pay your property taxes and dues regularly to keep everything in good standing.
