FAQ
Am I ready to be a homebuyer?
Be a Homeowner
Becoming a homeowner is an exciting milestone—but it’s also a big responsibility. To know if you’re truly ready, ask yourself a few key questions:
- Can I afford the upfront and monthly costs? This includes the down payment, mortgage, insurance, property taxes, and utilities.
- Do I have a stable source of income? A steady job or business ensures you can consistently make payments.
- Am I ready for long-term commitment? Homeownership is ideal if you plan to stay in one place for a while and are ready to maintain and care for your own space.
- Is my credit in good shape? A good credit score helps you secure better loan terms and lower interest rates.
- Do I understand the responsibilities? Owning a home means more than just moving in—you’ll handle repairs, maintenance, and other upkeep.
If you answered yes to most of these, you’re likely ready to take the next step! And if you’re unsure, that’s okay—we’re here to guide you through every stage of the process. Owning a home may be closer than you think. 💼🏡
What Is the Lender’s Formula?
Lender’s Formula
The Lender’s Formula helps banks decide how much home loan you can afford.
They mainly look at your income vs. monthly debts (like credit cards, car loans, etc.) using something called the Debt-to-Income Ratio (DTI).
🧮 Simple Formula:
Monthly Debt ÷ Monthly Income = DTI
✅ Most lenders want your DTI to be 40% or less.
That means your total monthly payments (including the home loan) shouldn’t go over 40% of your income.
💡 Example:
You earn ₱60,000/month.
Your monthly debts (including new mortgage) = ₱24,000
→ ₱24,000 ÷ ₱60,000 = 40% DTI ✅
If you’re under 40%, you’re likely loan-ready!
Need help checking your numbers? We’ve got you. 🏡💼
What Do I Look for in Homes?
Use this checklist to help you find your dream home!
📍 Location
- Is it close to work, school, or public transport?
- Is the neighborhood safe and quiet?
- Are there nearby amenities like parks, stores, and hospitals?
💰 Price and Budget
- Is the home within my budget?
- Have I factored in property taxes, insurance, and utilities?
- Can I afford the monthly mortgage payments?
🏠 Size and Layout
- Does the home have enough bedrooms and bathrooms for my family?
- Is the layout functional and comfortable (open spaces, flow of rooms)?
🔧 Condition and Age
- Are there any major repairs needed (roof, plumbing, etc.)?
- Is the home energy-efficient (good insulation, modern appliances)?
🛋️ Features and Amenities
- Does the home have outdoor space (yard, patio, garden)?
- Is there enough closet/storage space?
- Does it have modern upgrades (smart home systems, updated appliances)?
📈 Long-Term Investment
- Will the home likely retain or increase in value?
- Is the area expected to grow or develop in the future?
📑 Legal Considerations
- Does the home have a clear title?
- Are there any legal issues or unpaid taxes?
- Were any renovations or extensions done with proper permits?
Ready to start your home search?
Use this checklist to guide you and make sure your new home fits your needs! 🏡✨
Do I Need a Home Warranty?
Home Warranty Guide
| Reasons to Get a Home Warranty | Reasons You Might Not Need One |
|---|---|
| ✅ Peace of Mind: Covers unexpected repairs for home systems and appliances. | ❌ Already Covered by Insurance: Your home insurance may already cover major damages. |
| ✅ Older Home/Appliances: Protection for homes or appliances nearing the end of their lifespan. | ❌ New Home or Appliances: Newer homes or appliances may still be under manufacturer warranties. |
| ✅ Budgeting for Repairs: Helps manage unexpected repair costs with a fixed annual fee and small service charges. | ❌ Cost vs. Use: If you rarely need repairs, it might not be worth the cost. |
| ✅ Convenience: Home warranty companies usually provide service providers, so you don’t have to search for a technician. | ❌ Repairs Are Rare: If your home is in good condition or well-maintained, you may not need extra coverage. |
Decision Tip: If you’re worried about costly home repairs, especially with an older home or appliances, a home warranty might be a good fit. But if you have new appliances or are already well-covered by insurance, you might not need one.
What Should I Expect at Closing?
Get ready for a smooth closing with this handy checklist!
📅 Before Closing Day:
- Final Walkthrough: Check the home to ensure everything is in the same condition as when you agreed to buy it.
- Review Closing Disclosure: Go over the detailed list of costs and fees, and make sure everything looks accurate.
📝 During Closing:
- Sign Documents: Be prepared to sign a lot of paperwork (mortgage agreement, title transfer, etc.).
- Pay Closing Costs: Bring a cashier’s check or arrange a wire transfer to cover closing costs (loan fees, title fees, insurance, taxes, etc.).
- Make Down Payment: Your down payment will be due at closing—make sure to have the funds ready.
- Confirm Mortgage Terms: Double-check the loan amount, interest rate, and monthly payments to ensure everything is correct.
🔑 After Closing:
- Get the Keys: Once everything is signed and payments are made, you’ll receive the keys to your new home!
- File Your Documents: Keep all closing paperwork safe for tax purposes or future reference.
Congratulations! You’re officially a homeowner. 🎉🏡
Ready to move in and start this exciting new chapter!
What Is Pre-approval?
Pre-approval Guide
Pre-approval is the process where a lender evaluates your financial situation before you even start shopping for a home. It’s a key step in the homebuying journey, and here’s why it’s important:
✅ Why Is Pre-approval Important?
- Know Your Budget: It helps you determine how much you can borrow and what price range to focus on when house hunting.
- Stronger Offer: A pre-approval letter shows sellers that you’re serious and financially capable of buying the home, giving you an edge over other buyers.
- Faster Process: Having pre-approval speeds up the loan process once you’ve found your home, making closing faster and smoother.
📝 How Does Pre-approval Work?
- Submit Financial Documents: You’ll need to provide the lender with information such as income, debts, assets, and credit score.
- Lender Evaluation: The lender will assess your financial health and let you know how much they are willing to lend you.
- Pre-approval Letter: If approved, you’ll receive a letter outlining your loan amount, interest rate, and loan type.
Pre-approval Tip:
While pre-approval is a great tool to have, it’s important to keep your financial situation stable during the home search—lenders may recheck your finances before final approval.
RFO or Pre-selling?
RFO vs Pre-Selling: What Should You Buy?
When deciding whether to buy a Ready-for-Occupancy (RFO) home or a Pre-selling property, both options have their benefits depending on your priorities. Here’s a breakdown to help you decide which is the right choice for you:
✅ RFO (Ready-for-Occupancy)
Why Choose RFO?
- Move-In Right Away: If you’re looking to move in quickly or need a home immediately, an RFO is your best bet.
- See What You’re Getting: You can physically walk through the property and inspect it before purchasing, so you know exactly what to expect.
- No Waiting: Once you’ve completed the purchase, you can move in right away and start making the space your own.
- Financing is Easier: Lenders may feel more comfortable providing financing for an RFO since it’s already built and there’s no construction risk.
🕰️ Pre-selling Properties
Why Choose Pre-selling?
- Lower Price: Pre-selling homes are often cheaper than RFO properties since they’re not built yet. This can be a great way to save on your investment.
- Customized Options: Some pre-selling properties allow you to choose finishes, colors, or layouts, so you can make it more personalized.
- Payment Flexibility: Many pre-selling homes offer flexible payment plans, which can be easier on your budget before construction is complete.
- Potential for Value Growth: As the property gets built, its value may increase, giving you the potential for a good return on investment when it’s complete.
Which is Better for You?
- Go for RFO if:
- You need to move in quickly or don’t want to wait.
- You want to see the home in person and ensure there are no surprises.
- You’re ready to settle down in your new space right away.
- Go for Pre-selling if:
- You’re looking for a more affordable home and are willing to wait.
- You want a home that might increase in value over time.
- You’re excited about customizing and personalizing your home.
Both RFO and pre-selling properties have their advantages, so consider what fits best with your timeline, budget, and goals! Ready to explore your options? Let us help you find the perfect property!
Is Renting or Buying Better?
Rent or Buy?
The answer depends on your lifestyle, goals, and financial situation. Both renting and buying have their pros and cons, and what’s better for one person might not be the best for another.
✅ Renting might be better if:
- You prefer flexibility or plan to move within a few years
- You don’t want to worry about maintenance or property taxes
- You’re still building your savings or improving your credit
🏠 Buying might be better if:
- You’re ready to settle down in one location
- You want to build equity and invest in your future
- You’re financially prepared for a down payment and monthly mortgage
At the end of the day, it’s about what fits your current lifestyle and long-term goals. If you’re unsure, we can help you assess your options and find the best path forward—whether it’s a rental, your first home, or an investment property.