5 Things to remember in Pre-Qualifying

One of the important things to do in selling a property in Vista Land is to know if your client is qualified or not in acquiring a home. In order to do that, the seller must pre-qualify the client.

things to consider in pre qualifying before acquiring property in vista land

Here are the things you must remember in pre-qualifying:

  1. Citizenship

    • Filipino Citizens are entitled to acquire land in the Philippines.
    • Foreigners are allowed to buy Condominium(s) in the Philippines.
    • Foreigners cannot own a house and lot unless married to a Filipino Citizen and should sign an affidavit of waiver.
    • Dual Citizenship –upon taking Oath of Allegiance
  2. Marital Status

    • If single, CENOMAR is required.
    • If married, a marriage certificate should be provided.
    • If separated, should provide annotation in the marriage certificate as null and void
  3. Age Limit

    • Should not be more than 65 years of age upon maturity of loan (for Bank and In-House Financing)
    • Age of assigned Attorney-In-Fact (AIF) should be at least 21 to 50 years old
  4. Employment

    • Must be at least two years employed upon application of loan
    • Check Net Disposable Income (NDI)
      *** Maximum amount to be amortized by the client. Computed as:
      NDI = Gross Monthly Income x Credit Ratio
    Employment Credit Ratio Maximum Term
    Locally Employed (LE) 30% 20 years
    Self-Employed (SE) 25% 20 years
    Overseas Filipino Worker (OFW) 30% 15 years
    Note: If income is based on commissions, only 30% of the average is allowed as basis of income
  5. Credit Standing

    • The process of evaluating an applicant's loan history to determine the likelihood that the borrower will live up to his/her obligations also called credit analysis.
    • Credit investigation by Credit Management Association of the Philippines (CMAP) & Negative File Information System (NFIS).