Cavite has made home ownership affordable for countless Filipinos, but the process can be intimidating or overwhelming for first-time buyers. While it’s normal to feel a mix of excitement and apprehensiveness, it pays to debunk some misconceptions that tend to cloud your judgment.
Here are the most common, mistaken beliefs you ought to dispel right from the start:
MRI Is a Waste of Money
The mortgage redemption insurance (MRI) is usually a requirement before you acquire a housing loan. It may be another expense, but it’s not just an added burden to make your life harder.
Any Lancaster New City review from reputable sites such as Land Estimate would tell you that it would protect you and your family from foreclosure. In case the insured dies or becomes incapable of repaying the mortgage due to total disability, the MRI would pay off the outstanding loan balance.
For less than three thousand pesos per year, it can give you absolute peace of mind.
Reservation Fee is Refundable
Many developers would need you to pay a reservation fee to give you the exclusive right to buy a particular property within a certain period. However, it’s non-refundable. If you have a change of hearts and decide not to move forward with your purchase, you’ll never get it back.
Full Down Payment Must be Paid Upfront
The down payment is a prerequisite for the actual turnover. Its size depends on the loanable amount the developer allows for specific house models, but it usually costs tens of thousands of pesos.
Although you have to pay it in full before you can move into the house, many developers let you pay it in multiple installments to make it more manageable.
Home Improvements are Not Allowed
It’s common for gated communities to restrict property modifications to maintain a common theme, but some usually changes are acceptable. Adding fences and building a terrace are examples of the improvements they will allow you to do.
Tackle home ownership with the right mindset. If you know what you can and can’t do, as well as what you should and shouldn’t do, you can buy your first house with little stress.