How to Qualify For a Bank Loan

BPI LoanPhoto Credit: BPI Housing Loans

Nowadays, owning or buying a new condominium is easier. Thanks to the banks that made owning a condominium a possibility to a lot people. Amaia Affordable condos made buying a new condo even more easier.

Several years ago, owning a condominium is just for very wealthy individuals who can afford a lump sum down payment or even the full price. And buying a condo through a bank loan is unlikely an option due to steep interest rates. Well, as I said, that was several years ago and those are a thing of the past.

But being easy doesn’t mean a free pass to an approved bank loan. There are requirements of course. Just like you are investing on a condo, the bank is also investing on you once you get a bank loan. The same as what you should do when choosing a good condo investment, like checking the developer’s credibility, your bank will also check if you have the capacity to pay the loan and the amount of risk they are taking once they grant you the loan. This brings us to the loan requirements. When applying for a loan, these are things that you must consider.

1. Certificate of Employment

A bank will want to know where your funds will be coming from. For businesses, this might be the business registration. And for Overseas Filipino Workers(OFWs) it will be the latest Contract of Employment that the banks will be looking for.

2. Latest Pay Slips

A pay slip will reflect how much money you are making month after month. Usually, the pay slips for the latest three months will be required.

3. Net Disposable Income

Banks follow a certain affordability ratio for them to determine if a loan applicant can qualify for a bank financing loan for a condo. To qualify for a loan, your monthly amortization should be not more than 40% of your net disposable income. Or income after deductions such as taxes, SSS or GSIS, Phil Health and PAGIBIG. If you have an existing loan or other liabilities, this will also affect your net disposable income.

4. Income Tax Return

One of the top requirements that banks would ask is your Income Tax Return for the last 3 years. This will show your personal financial trend. So to qualify for a bank loan, make sure that your Income Tax Returns will convince the banks that you have an increasing (if not steady) income year after year. This is a good sign that you really have the capacity to pay back the loan.

5. Bank Statements

Sometimes your bank statements with other banks will be required. This happens if you don’t have a very convincing proof of income. A fat savings account may let the banks reconsider your loan application.

6. Co –Borrower

Not really a requirement but a co-borrower may be necessary if your net disposable income did not qualify for required number. A good prospect is your spouse. Pooling you incomes together will strengthen your loan application.

Ready to buy a condo? Check how affordable are Amaia Steps Condos here.

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