You can make the entire process of finding and buying a home in Davao much more enjoyable by simply surrounding yourself with a team of experienced home-buying specialists. Each member of your team know what you're going through and can provide the answers and assistance you need.

In addition to a qualified mortgage representative who can arrange for your mortgage, you'll want to add a realtor and a lawyer or notary public.

It is a common practice of using a realtor to find a new home; however, it is not mandatory to use the services of a realtor when buying or selling real estate in Davao or elsewhere in the Philippines. It is generally advisable to do so if you are not sure on what kind of real estate that you would like to purchase. Whatever you decide, find someone who can advice and assist you in comparing and studying a variety of property listings. To make shopping for a home more productive and enjoyable, your realtor should have a good understanding of your needs, including your choice of neighbourhood and your price range. Remember, it is typically the responsibility of the seller to pay any real estate commission associated with the sale.

Referrals are a great way to find a qualified and helpful lawyer. When the time comes to make an offer on a home, you'll want your legal representative to review it, so don't wait until the last minute to find one.

Your lawyer will review your offer to ensure that it includes all the necessary information including, among other details, the following -

• The proposed purchase price.
• A list of items (called chattels and fixtures) included in the sale. For example, appliances, light fixtures, bookcases and draperies may all be negotiated into the purchase price.
• Any condition you may need to protect yourself.
• The closing date for the sale of the property.

A little out of budget? Whether you're a first-time or experienced home buyer, choosing the right financing option that best suits your needs is equally important.

In Davao, there are several options for you to choose from. These financing options are usually referred to as "Home Loan" programs and are offered by these institutions.

• Banks and Other Financial Institutions
• Government
• Developer's In-house Financing, if a condominium or subdivision property

Banks and Other Financial Institutions

Did you know that there are over 2,000 financial institutions operating in Davao City including over a hundred branches of Philippine and international banks? Some banks operate 7 days a week and those inside big establishments such as malls operate 6 days a week.

There are obviously some requirements that have to be met in applying for a house loan and each banking institution will be different. Generally, they will have the same basic requirements such as:

• You must be a Filipino citizen
• Be at least 21 years old and no more than 65 years old at loan maturity
• Must be employed or self-employed

As a safe bet, approach your own bank first to enquire or discuss your home purchasing plans. You may have already developed a close relationship with them and may get better incentives this way. They may also suggest other alternative or creative ways in getting your loan application approved. Home and personal loans are big businesses for banks and therefore they will do their maximum effort in keeping you as their client. Also, some banks, like Banco de Oro, accept loan applications from foreigners who have resided here in the Philippines for a minimum of 2 years. Enquiring around Davao City, or checking their websites will help you in deciding the best options for you.

Some developers will have partner banks working with them. It is advantageous for you to enquire on this because there will be additional benefits offered, such as the waiving of application fees.

Government

Government loans offered through government sub-housing agencies are for low to medium cost housing because the loanable amount is not that high. In the Philippines, the main provider of funds (funders) of government house financing are:

Funders	Clients
Home Development Mutual Fund (HDMF) or Pag-IBIG	Fund members
Government Service Insurance System (GSIS)	Government employees
Social Security System (SSS)	Private sector employees

The criteria where a member of a funding agency is qualified to borrow varies. But generally, the following criteria should be possessed by the borrower:

• Be an active member and has paid at least 24 monthly contributions for HDMF members
• Not be more than 65 years old at loan maturity
• Not have other outstanding housing loan by the SSS, GSIS or HDMF
• Be up-to-date in the payment of all due loan amortization
• Have satisfactorily passed background/credit and employment checks
• The employer must be up-to-date in payment of monthly contributions and remittances

The loan terms do not exceed 30 years and the collateral is a first mortgage lien on the real estate property and improvements thereon. Each agency will be different in terms of the maximum loanable amount you can qualify and new programs are being introduced once in a while. it is best to check with the agency that you are a member of.

Special mention of the Home Development Mutual Fund (HDMF) or Pag-IBIG is necessary as this fund represents the strongest partner in realizing Filipino workers’ dreams.

After eight years as a voluntary fund, the nature of Pag-IBIG membership reverted to mandatory, effective January 1, 1995. Coverage of the Fund shall be mandatory upon all employees covered by the Social Security System and the Government Service Insurance System, and their respective employers.

Today, more than a decade after, the Pag-IBIG Fund continues to be a strong partner in realizing Filipino workers’ dreams, moving towards its vision of becoming a premier and globally competitive provident financial institution.

Pag-IBIG members can borrow as high as 2 million Php, based on the lowest of the following:

• 1. Actual need – how much do you want to borrow?
• 2. Loan entitlement – how much or what level of contributions are you making?
• 3. Capacity to pay – what is your monthly net disposable income? Is it within 40% of the monthly loan repayment of principal and interest?
• 4. Loan-to-value-ratio – what is the ratio of the loan amount to the appraised value of the collateral?

Some developers who want to expand their markets to government sub-agency members must first be accredited with that specific sub-agency. There are certain requirements that must be met which may or may not be favorable to the developer, or a development may or may not conform with the Sub-agency’s requirements and standards. If the borrower wants to avail of his agency’s loan programs, he may have to check also whether the particular development he is interested in is an accredited project of his agency.

Developer’s In-house Financing

Most project development offer in-house financing to interested buyers, with terms ranging from 0 – 15 years and interest from 0% to 18%. In-house financing are loans offered to the buyers by the developers. Many buyers prefer in-house financing over using a bank or government sub-agency. For one, it is a much simple procedure and is hassle free. Other benefits include:

- faster processing of transactions, no loan application fees, less paperwork, minimal background and income checks, fixed interest rates and the ability to prepay the loan amount without penalties being imposed.