2 Important Things to Consider before Applying for a Home loan (Pag-IBIG Home loan)

All about Home Loans

Have you ever imagined yourself or your future self with a family, possibly living in your hard-earned dream home? A home with a lovely landscape design, concrete walls, adequate kitchen space where your family members may make memories while eating in a pleasant dining area, and, of course, a comfortable bedsheet in a clean and peaceful bedroom. A simply not a house, but a home.

Seems impossible? Especially if you are a regular person who works in a company or perhaps lives overseas and cannot afford to build a house right away. This could be a sign that you should consider applying for a home loan.

What is a Home Loan / Housing Loan?

In its most basic form, a home loan is a legal agreement between a bank or financial institution and a person who borrows money to purchase a property (such as a house) and repays the money over time. A home loan could be really beneficial nowadays, as most of us are struggling to save money for the future. Are you considering acquiring a property with a home loan? However, before you begin applying for a home loan, here are two (2) key factors to consider before applying for a home loan that may lead you to consider a Pag-IBIG home loan.

1. Financial Capabilities

Home Loans / Housing Loan Financial Requirements

It is essential to understand one’s financial capacities to determine whether or not one will be eligible for a home loan. This is used to determine how long it will take to repay a bank or financial institution for money borrowed. Furthermore, knowing your financial capability might help you determine how much money you can borrow. It’s a good thing that with a Pag-IBIG Home Loan, an applicant can assess their financial capacity using a Pag-IBIG Housing Loan Affordability calculator

Do you have a stable cash flow?

is a must-ask question that can determine your financial capability. Monthly income is an important factor in your home loan application. An applicant’s financial situation must be stable because it will affect the Equated Monthly Installments in terms of paying on the agreed-upon payment date each month.

Include your credit history

When applying for a home loan, some applicants tend not to check this, assuming that previously missed payments will be forgotten. It does not work that way. Because the thing is most of the financial institutions which one is borrowing from or applying home loan do a credit investigation on an applicant to know if he/she will be approved for a home loan, diligently checking all the applicant’s accounts even the previous ones. Banks and other lenders frequently communicate information about delinquent (nonpaying) borrowers. In addition, a history of nonpayment could be a major reason for not approving an application for a home loan.

Calculating the monthly installment

Knowing your financial capability based on your monthly gross income entails calculating the monthly installment to be paid each month (Equated Monthly Installment). According to Corporate Finance Institute, An Equated Monthly Installment (EMI) is a type of payment made by borrowers to lenders monthly in a fixed amount. EMIs include both the interest and principal amounts. After a certain number of EMIs are made, the loan will be fully paid off.

An applicant must be aware of the calculated monthly installment of a home loan for which he has applied. This includes the loan amount, term, and interest rate. This would also assist you in properly allocating the EMI from your salary to avoid delays or nonpayment within the appointed payment date, which could result in the forfeiture of the loan you are applying for.

2. Developer’s Background

Have you seen a poster for the house developer for which you applied for a home loan? Perhaps it says a lot of good things about their houses, which most advertisements must have in order to encourage customers to buy what they are advertising.

But there are things you must consider before choosing a developer.

Choosing a developer


When it comes to purchasing a property, aiming for a perfect location is one of the hardest parts. Most individuals currently base their decisions on the property itself rather than the location, which might lead to disappointment after they move in. A good example is an area that floods after rain that you won’t know about unless you have been there. As well as the telecom signals for some clients who work from home these days. When it comes to the location of the house, convenience and accessibility should also be addressed. 

Home Loans / Housing Loans - Considering a Developer
Things to consider when choosing a developer

Will it have access to essential locations such as stores, schools, and even roads? Lynville makes sure that the client will not regret their reservations. We choose places that are either near the national highway or near the town proper that usually are near the essential places such as stores, schools and any other.

Technology used in construction

We all know that when it comes to selecting materials for our future homes, we all want the greatest quality that is also inexpensive. When buying a house, one of the most significant factors to consider is construction technology. The majority of clients want homes that are constructed to last and can survive natural disasters like earthquakes and typhoons. This will be determined by the construction technology employed to construct a home. Lynville Land Development Corp., for example, uses Aluforms. 

Lynville and Aluforms: the future of building beautiful and durable homes.

Lynville strives to provide consumers with homes that are cheap, long-lasting, and structurally sound, with few flaws, defects, decay, or deterioration. All housing structural components in a single floor can be cast as a single, strong, and durable monolithic piece.

Aluforms is a new building technology that uses aluminum formwork panels instead of steel formwork panels. It also speeds up the construction of houses as compared to traditional methods.

Financing Scheme they Use

Home Loans / Housing Loans by Pagibig Fund

Investing in real estate property takes time and careful financial planning. Knowing and understanding your existing financial situation is a good place to start. Since things like credit scores, mortgages, and down payments take time to obtain and repay. Knowing what financing scheme is best for your job is essential before applying for a home loan. Two of which are Pag-IBIG financing and bank financing. Pag-IBIG Fund is owned by the government, whereas banks are owned by private corporations.

Lynville gives the customer the option of using bank financing or Pag-IBIG financing. Lynville has banking relationships with RCBC, UCPB, and Landbank. If a client chooses bank financing, the maximum term is up to 20 years. A borrower’s maximum term under Pag-IBIG Financing is 30 years.

Despite the variety and flexibility that bank financing provides, many people remain skeptical of obtaining a loan from a bank. High interest rates, longer processes, stricter policies, and shorter payment terms are some of the reasons.

Pag-IBIG fund lets the client borrow up to 6-million pesos at very low rates. In contrast to banks, which seek profits, minimum wage earners are accepted. As a result, they will not grant credit to anyone who cannot demonstrate her ability to repay. For more information, visit https://kami.com.ph/112309-pag-ibig-housing-loan-2021-form-requirements-calculator-application.html.


That’s it! Have you applied for a home loan yet? Have you thought about these things? Or, if you intend to obtain your dream home through a home loan, this could be a sign.

Purchasing a home may not be as simple as purchasing personal items. It takes a significant amount of time to think about and plan financially. That is why Lynville is here to assist you in realizing your dream of owning a home through simple and easy steps in reserving a home with Pag-IBIG. What exactly are you waiting for? Make your reservation now! 

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*For more information about durable and affordable house, please contact 0917-707-7386; follow our official social media accounts: Facebook/Instagram/Tiktok: /lynvilleland