My First Home Loan! (SECB)

Hooray!!!

I'm ecstatic! I just received my schedule with Security Bank with my Home Loan and I couldn't be any happier. I was a bit nervous that I wouldn't make it with my deadline but it seems like my schedule was perfect. For a first timer this is not bad :-D

December

I have no experience in loans, except for the one I did with SSS* so I don't know what to do. I did prepare myself with the most important document I have on my disposal which is my FORM 1701 (Annual Tax) so I think I have a bit of chance there to be approved. While I'm not broke, most of the money I have are either invested, not liquid or something I could not present. Other than my current responsibilities with the DP of the condo and other bills, a huge chunk of my salary goes to a joint account for our wedding. On my first attempts to apply for a loan I had a friend of mine who is affiliated with the developer question the bank account, since my boyfriend who shares the joint account with me is not a Co-maker nor have I any intention of doing so. I pride myself a modern woman and I don't need my man to pay for my purchases. I know he'd appreciate that. (Independent Women by Destiny Girls on the background)

Besides I've done the home loan calculator and found out my salary is sufficient for what I'm loaning (and more). If I add him as co-maker + co-owner the bank would ask papers from him too. Double the effort and headache.

First Heartbreak

My first choice is actually PSBank but I haven't applied to them personally. I had my papers go through the agent I know and there were no feedbacks unfortunately. At the middle of December I was already panicking. I was told to have the loan done atleast 3 mos before the deadline and I'm about to be late! She did assure me to wait for it but I was so worried I went on with my other choice: Security Bank. (As of the moment I'm still wondering why I was declined there. I mean I don't have any outstanding loans! My credit is clean too)

Try and try!

Maybe it's because it's holidays but it took a while for all the papers I have to be assessed. I was becoming paranoid checking the link that was given to me as they are processing my application. I followed up once or twice and tried to get my head off of it. So when I received the email that my case was finally Approved I couldn't believe what I'm seeing! It's a wonderful (early) birthday gift.

Slight Hiccup

When all the papers are prepared and I was told to go to their office, I was shocked to have forgotten the loan fees! I was so happy to be approved I completely forgot about it. Good thing I have a semi-emergency fund for that so I only needed to withdraw it. BF wondered why that figure but I guess it differs on a lot of things. When I was signing my papers I overheard with the bank rep next to me how much it costs for another customer and it was 10k less than what I needed to pay. I listened more (what an eavesdropper) and found out the other customer was getting a house. Probably the terms are different from mine, or condos are just much more expensive than getting a house? Who knows. And again the money is not the issue here, it's the other requirement: CENOMAR. I had to wait for 10 working days just to receive it! I couldn't for the life of me guess why it takes that long! Does the system crawl for 10 working days? Does the printer need to 5 hrs per paper? WHYYYYYYYY!!

First Meetup

I never thought that the papers I need to sign are novel thick. I should have brought a pen with soft handles! But who am I to complain? If anything I am giddy doing this. I've also paid for the fees downstairs, opened the account where I would pay my amortization and completed all the papers I need to submit. Granted for a bank that caters to just a few customers that time it did took a lot of time. The old guy in front of me was talking to himself how slow it is and there's not even a 10 of us waiting there. It wasn't even lunch time and it's a Monday too.

Schedule

Days later I contacted my friend again if they were able to receive my papers from the bank. She was able to see mine and had it released ASAP. So if you reading this and are currently waiting for the bank to get back to you after they've sent out their Letter of Guarantee, call your agent to check on it. And just today, literally a few minutes ago I received my schedule of payments. I have made it through the deadline! Plus, my schedule is just perfect. It's days after salary woot woot! Thanks SECB!

So why Security Bank? (Disclaimer: Nope not paid. I'm actually the one paying them so shut it.)

Other than being one of the banks with the lowest rates, one of the things I liked about them is the Fantastic Elastic feature. It's not as if it's just my idea, but anyone who are worth their salt know that: The interest rates only exist because of the principal amount

So it's a good habit for anyone to know an important feature of any loan product: Prepayments.

If we believe that statement is true, paying against the principal is a good habit because you decrease the amount that is being computed with interest. Less principal, less interest. Most banks allow one time every year, others do but with fees, but with SecB, it's as easy as overpaying a month! All the over payments go to the principal for as much as 25% of your loan amount per year and you can be assured there are no additional fees !

I was so in love with the idea I didn't look anywhere else because for me it's a good deal. Once I get to finish my part on our wedding budget I sure will add more to my current amortization. I would like to know how much I can compress my terms with them. Challenge Accepted!

 

 

 

*I didn't need it but was urged to avail so that my next loan (in case I would need it) is double of the base amount.

Stock Image from https://squarefootindiablog.files.wordpress.com