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7 Tips on How to Get Your Personal Loan Approved

Personal loan is a type of loan that you can use to finance smaller purchases such as home renovation, payment of tuition fee for your child, or finance a family vacation among others. In other words, it is a multi-purpose loan that allows you to use the funds on things that matter to you.

Compared to home or car loan, personal loan has shorter term and more flexible monthly installment scheme. Nonetheless, you can only borrow as much as P1 million, depending on your bank of choice.

Here’s the thing: with the uncertainty that comes from working overseas, how can you get your personal loan approved?

Here’s how: 1. Open and maintain a savings account. 

Savings account serves dual purpose: for money-keeping and a credit booster. Aside from serving as your fund for the rainy days, a savings account shows your ability to manage money and eventually loan payments, especially if you regularly contribute in it.

2. Be honest and truthful with your loan application information. 

There is a reason why banks ask your address, home or mobile number, occupation, and estimate of monthly salary among others. They need to verify if you are a real person and capable of paying the loan. Therefore, supply only factual and truthful information in your loan application. If they cannot contact you, then no loan processing will take place.

3. Maintain a good credit standing. 

Credit standing is your reputation that reflects your ability to meet various financial obligations. The better your credit standing, the higher the possibility of getting your personal loan approved. On the other hand, unpaid credit card debts or bounced checks are considered red flags and banks don’t like them.

Even if you don’t intend to get any type of loan, it is still important to maintain a good credit standing. This will facilitate and speed up loan processing in the future in case the need for additional funds arises.

4. Know your options. 

There are tons of banks and lending institutions that offer personal loan at competitive rates and packages. Before you apply for one, make sure to check the facilities that offer your needs, easy and flexible payment terms, and other features that allows you to get more than what you apply for. This may take time, but familiarizing yourself with the procedure will be helpful when you apply for a personal loan.

5. Prepare the needed requirements. 

Apart from incomplete or insufficient information, one of the reasons why loan processing takes time is because of incomplete requirements. Once you made up your mind on where to avail of a personal loan, make sure you prepared all the documents needed to process the loan. After all, banks won’t process your application and release the funds if you can’t surrender all the documentary requirements required from you.

6. Be realistic in terms of loan amount. 

You want P1 million, but do you really need that amount when all that you want is to finance your child’s tuition fee? This is where the importance of providing accurate information comes in. Banks assess your ability to repay the loan according to your employment and savings account. If you are unable to show any documents to prove such ability, then don’t expect the bank to grant you the maximum loan amount. After all, an outright decline is possible.

7. One bank at a time. 

Here’s another tip: don’t apply for a personal loan in several banks all at the same time. You might want to take chances and believe that at least one (or two) will grant your loan. Believe it or not, this will reflect during your credit investigation and banks may think that you are financially trapped – and it’s not good. There is a higher chance of getting your application declined as well.

The next time you apply for a personal loan, take these seven tips in mind. There is no guarantee of approval, but these tips will help you boost your chances of getting your loan approved.

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Money Matters: 7 Money Tips for OFWs When Going Home

One of the most awaited events for every OFW family is when you go home, especially if its been years since you last set foot in the country. Whether it’s a one-week or one-month vacation, going back home means nonstop eating, shopping, and catching up with friends and family. This also means the possibility of depleting your hard-earned money slash savings and going back to where you are working with almost nothing left in your pocket.

In case you are heading home, make sure you read these tips – and keep your finances in check: 1. Set a budget. 

This is the first rule every OFW must remember when vacationing.

Admit it. There is a tendency to splurge on your family member and give in to friends when you’re back home, especially if it has been years since they last saw you. Nevertheless, never leave without setting your budget. Set aside money and categorize them accordingly – shopping, dining out, quick vacation, and even last-minute or emergency expenses. More importantly, make sure to stick to it. This will help you limit your expenses and at the same time, prevent careless spending.

2. Know needs from wants. 

Now that you are in the process of setting a budget, make sure you differentiate needs from wants.

You might be tempted to buy everything that you can before heading back to the Philippines. Before you make those purchases, stop, think, and decide whether your son really needs that new rubber shoes when you just sent him a new one a month ago. By differentiating needs from wants, you will be able to limit your spending and focus more on the non-material things. You’ll save your wallet, too.

3. Take it easy on pasalubong. 

Every OFW is guilty on this. After all, giving pasalubong is part of the Filipino culture and at the same time, a love language.

Wait, do you really need to buy one for your friend’s niece or give something to your neighbor? As much as possible, limit pasalubong to immediate family members. You would be able to save a lot if you don’t let the pressure of giving something to everyone get in your head.

This leads you to the next tip.

4. Learn how to say NO. 

Asking for pasalubong or making a list of bilin is common in Filipino society. Most of the time, pressure sets in and it’s hard for you to say “No” when someone asks for this and that.

At this point, learn how to say no. You don’t have to give in to everyone’s demands just because they helped you get a job overseas or your kumpare wants nightly drinking sessions in your honor. You can’t please everybody. If they can’t understand that you are in a tight budget, then it’s not your problem anymore.

5. Remember that you are not a millionaire. 

Working overseas comes with many uncertainties. In an instant, political conflicts, natural calamities, or changes made by your employer could ship you back to the Philippines.

Therefore, don’t live like a one-day millionaire. Never splurge on something that you might regret later on. What you have is a product of your hard work and sacrifices abroad. Spend your money wisely.

6. Set your long-term mindset. 

As harsh as it may sound, you are only as good as your employment contract. Once it’s done and your employer no longer extends your services, you have to face the consequences of going back to the Philippines and look for a new job to sustain the family.

This is why it is important to set your long-term mindset and goals. Instead of focusing on the present and sending money and material things to your family, make sure you are able to prepare for the future. You can’t work abroad forever, so as much as possible, save and invest.

7. Don’t forget your local accounts and investments. 

Do you have local bank accounts? Before heading back to your work overseas, make sure you check your local accounts to see how money is being spent. This is a good opportunity to check any dormant accounts where you get charged with P200 or P300 dormancy fee every month. Checking on your investments, if any, is also a must to keep you updated of how much money you are able to grow.

If you don’t have a local account, then it is best to set up one (or two). Take your time home as an opportunity to study investment options to help you grow your money. This way, you are sure that you have something to lean on in case of emergency.

The time you spend with your family is worth more than the material things you give them. Focus more on things that matter without emptying your wallet. Working overseas is both a blessing and a privilege. Make use of it in the best way that you can without going bankrupt.

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Top 5 Reasons Why Your OFW Loan Gets Declined

Overseas Filipino Workers are hailed as “heroes” or in Filipino, “bagong bayani.” Because of this, various options and loan facilities are offered specifically for you. Oftentimes, you get special treatment and special rates as well.

How come your OFW Loan still gets rejected no matter how many times you apply?

Here’s why: 1) Incorrect / Incomplete / Unclear Information 

The information you will provide is very important. Banks and other lending facilities use this information to check your background and at the same time, determine your capacity to pay the loan. Any inconsistencies such as address or mobile number could delay your OFW loan or even gets declined.

Therefore, make sure that all the information you will provide in the loan application is true and complete. Submit all the required paperwork to prove your credit worthiness. Don’t worry. Your information will remain confidential.

2) Lack of Stable Income 

Despite what was written in the employment contract, you have little control over it. Depending on the situation and your employer, the term or nature of your employment might change or prematurely terminated. This is the reason why lending institutions reject your OFW Loan. They need to see your capacity and ability to pay the loan in a timely manner – and six months working overseas is not enough to prove that. Jumping from one job to another is also not a good sign for the banks.

Therefore, stabilize your job and prove that you are worthy of credit. If you really need that loan, apply with a co-borrower, preferably a close relative with stable source of income and good credit standing. This could boost your chances of getting your OFW Loan approved.

3) Negative / Poor Financial Record 

Do you have unpaid credit cards or loan facilities you haven’t paid for the longest time? That could affect your credit standing and result to OFW loan rejection.

Lending institutions are sensitive when it comes to potential borrower’s credit standing because they need to make sure that they will be paid upon maturity of the loan.

Therefore, pay all your past due accounts before applying for a loan. Constant payment is a big plus and once the bank sees you are diligent in paying off your debt, it could approve your loan application.

4) Job and Destination Country

Working overseas and showing your capacity to pay are not sure ways to get your loan approved. Even if you have sufficient savings, lending institutions also look at the nature of your job and the country where you will be assigned. These two factors are crucial because any changes in the foreign policy or the country’s current situation could affect your employment, including salary rate.

Therefore, choose a job and destination country wisely. Do not put yourself at risk just because a country with evident political tension is offering higher pay. Consider your safety first before anything else.

5) Large Amount for Loan Request

There are two types of loan: secured, which means it has to be backed up by a collateral (car, real property, or equipment); and unsecured, which doesn’t require any security but comes with high interest rate.

Most of the time, banks and other lending institutions go for secured type of credit for protection purposes. The security you will offer will help as to how much you can loan, depending on the appraised value of your offered collateral. If the property you offer for a collateral is pegged at P500,000, don’t expect the bank to lend you P1 million.

Therefore, don’t apply for OFW loan using collateral that is appraised at lesser value than how much you want to borrow. Check your properties that you can offer as a collateral and make sure that they value more than the amount you plan to borrow. More importantly, be realistic with the loanable amount. Keep in mind that banks prefer someone who can pay them in time and would not want to go through the time and hassle of re-possessing your property.

At the end of the day, applying for OFW Loan requires strategy. Determine your need for loan, check your finances, and see if you are capable of paying. You can also check Balikbayad to see how they can assist you with your funding needs.

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Money Matters: 6 Best Investment Options for OFWs

How many times will you hear OFWs say that the reason why they work overseas is to provide a better life or future for their families? The reasons may vary, but one thing is for sure: you are really after the good and secured life.

Working overseas allows you to earn more than what you can earn in the Philippines. Unfortunately, this “capacity to earn in dollars” will only be as good as your contract. Before your employment contract expires, you should be able to find additional means to grow your money and make sure you can use something for the rainy days.

Check out these best investment options you can try: Mutual Fund

This is the simplest form of investment you can try. For starters, you can invest P5,000 and a professional fund manager will handle your account. He will place your money in  pooled investments, which will then be invested in various securities like shares of stocks, government bonds, and other investment options,

This is a good investment because it requires little time and effort, thereby taking the work out of your hands. BPI, Security Bank, PNB, and Sunlife are some of the financial institutions that offer mutual funds.

Unit Investment Trust Fund (UITF) 

This type of investment is similar to mutual funds where professional fund managers handle your money. The difference is that UITFs involve per unit investment as opposed to mutual fund’s shares.

This is a good investment because you don’t need to exert time and effort to grow your money. It is readily available, poses lesser risk, and yields higher rates compared to time deposits. UITFs are also offered in major banks like BPI, BDO, Metrobank, PNB, and EastWest Bank .

Bonds 

Bonds are debt instruments where you can lend money to either the government (treasury bonds) or corporation (corporate bonds). Bonds also have fixed maturity dates and allow you to earn bigger profits. This also allows you to diversify your investment portfolio.

This is a good investment because of the minimal risk. Whatever happens, the issuers of bonds are obligated to pay you in both principal plus interests. Payments are also made on a semi-annual basis – and you are sure you can get that. Metrobank, PNB, and BPI are some of the banks that sell bonds.

Stocks 

If you are willing to take a risk, investing in stocks can be a good option. Investing in the right companies also allows you to grow your money by at least 50 percent, especially when you do it right.

This is a good investment because you are able to keep track of your investment online even if you are working overseas. You can also expect higher annual returns and issuance of dividends at least once a year. Investing in stock market can be intimidating, but the good news is there are various workshops, books, and articles online that will help you better understand how it works. COL Financial Group, BPI Securities, and First Metro Securities are among the accredited brokers of the Philippine Stock Exchange.

Owning a Franchise 

This is another risky investment, but if you are willing to try it, the results could pay off. This is because franchising allows you to learn and understand how a business works using a tried-and-tested system. Franchise fee could range from P35,000 to as much as a million, depending on your franchise.

This is a good investment because it allows you to earn additional income and at the same time, provides livelihood for your family. This will teach the family members the importance of money and earning as you work overseas.

Real Estate

It may require a higher amount, but many OFWs prefer investing in real estate for future family home or for the sake of having a property. There is higher risk as well because you need to make sure that you will be able to pay the amortization. Nonetheless, nothing beats the joy of having a property you can call your own.

This is a good investment because the property has a potential of providing you bigger returns. Generally, the value of a property appreciates too. Just make sure that in buying a property, you think long term, consider the location, and the possibilities you can do should you decide to come back to the Philippines for good.

OFWs have many options when it comes to investing hard-earned money. Don’t just settle with your monthly salary since you will never know what will happen. Choose the best investment option for you and you will start saying hello to earnings in no time.

 

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Money Matters: 6 Financial Tips for Every OFW

Every Overseas Filipino Worker has their reason for leaving the country. At the end of the day, it all boils down to providing a better and more secure future for the family. That is because sadly, working abroad, could help you provide a better life.

Here’s the thing: earning in dollars does not guarantee a good life. In fact, there are (many) cases when OFWs have little to no money left once the contract has expired.

Don’t let this happen to you and your family by remembering these money-savvy tips: 

1. Set a goal. What is your reason for working abroad? Whatever the reason is, it is important to set a goal to help you keep your eyes on the prize. You can start with “I want to save P100,000 by the end of the year so your family can start a sari-sari store” to get you motivated. This leads you to the next tip.

2. Always set a budget. This is the problem with many OFWs. Since you are earning more than what you can earn in the Philippines, you tend to be complacent and send a big chunk of your salary to your family. That shouldn’t be the case. Instead, set aside portions of your salary for savings, remittance, and daily expenditures – and make sure to stick to it. Allocating your money will help you keep track of your earnings and at the same time, put your money into good use. If it’s possible, set up different bank accounts for specific purposes.

3. Needs over wants. It’s easy to give in to the request of your family. Being away from them makes you feel guilty; hence you shower them with material things to make up for the time lost. The problem with this is that material things don’t last and you might end up spending more than saving. Prioritize needs over wants and don’t feel bad if you are unable to buy the latest phone or tablet for your kids.

4. Don’t be afraid to invest. Does the term “stock market” or “investment” scare you? Financial literacy is not common among Filipinos, but this doesn’t mean you should join the bandwagon. Read about various investment options available and find out which one you are more comfortable with. All it takes is an initiative to invest, no matter how small, and you will be growing your money in no time.

5. Know who really needs your hard-earned money. As the person working overseas, you are often tasked to help people other than your immediate family in times of emergency. After all, you are earning in dollars and it won’t hurt if you pay for your nephew’s tuition, which they promised to pay you back when able. Go back to your goals and remind yourself why you are working abroad. Money may come easily, but this doesn’t mean you should carry the burden of providing for everyone. You don’t want the culture of laziness and apathy grow in the family, and prioritizing your expenses could stop that.

6. Stop the culture “over-giving.” Your hard-earned money is precious. While giving pasalubong to your immediate family is fine, you are not obliged to give something to the whole clan. This could be a buzzkill, but set aside a budget for gifts when you get home and don’t feel bad if you are unable to give something to your barangay captain.

At the end of the day, remember your goal on why you are working overseas. This will help you get back on track and remind you of the needs of your family.

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Own Your Dream Home with SSS Direct Housing Facility Loan

You know that PAG-IBIG offers Housing Loan facility to all its OFW members. Did you know that if you are a member of SSS, you can also apply for this type of facility?

Read on to learn more about SSS’ Direct Housing Loan Facility for OFWs.

Overview

The Direct Housing Loan Facility for OFWs is among the many services offered by the Social Security System. Its main goal is to support the shelter program of the government, which aims to provide low cost and socialized housing to Overseas Filipino Workers.

Who are OFWs? 

To avail of this type of loan facility, OFWs are private sector worker who is:

  • Currently deployed abroad whose contract was processed through POEA or authenticated by the Embassy abroad where you are working
  • Has employment contract, which is subject to renewal or deployment
  • Filipino national who is currently an immigrant or a citizen of another country, but wishes to buy a property for his/her family who are still in the country.
  • Overseas Filipinos living in other countries for a long time but wants to avail of housing packages when they retire or for their families.

Loan Details 

Purpose: Construction of a house or new unit, purchase of a lot and construction thereon, or purchase of an existing residential unit.

Loanable Amount: Maximum of P2 million for low-cost housing loan. For socialized housing loan, loanable amount is up to P450,000.

Terms of the Loan: SSS home loan is payable in multiples of five years but not exceeding 15 years.

Interest Rate: 8% per annum for P450,000 and below, 9% p.a. for loans above P450,000 but not exceeding P1 million; 10% p.a. if the amount is over P1 million but not exceeding P1.5 million; and 11% p.a. for loanable amount more than P1.5 million to P2 million.

Allowable Collateral: TCT/OCT/CCT issued by the Registry of Deeds in the name of the principal borrower. Consequently, the property must be free from liens and encumbrances. The said property will be secured by Real Estate Mortgage (REM), which will also be annotated on the title of the property held for security. A pre-selling property is likewise accepted as a collateral.

Insurance Coverage: This includes fire insurance, mortgage redemption insurance, and home guaranty corporation coverage, which will be paid for by the borrower.

SSS Home Loan Requirements:

1. Borrower must be a certified OFW, voluntary member of SSS with at least 36 months contribution and 24 months continuous contributions. Consequently, he/she must not be more than 60 years old at the time of application.

2. Borrower must not have a previous grant of SSS home loan or final SSS benefits.

3. Borrower must submit the following documents upon application:

  • Application for Housing Loan with attached 1×1 picture of the borrower.
  • Certification from POEA/DOLE/OWWA/SSS to prove that you are an overseas Filipino worker
  • Certificate of Loan Eligibility, which you can get for a fee of P100
  • Deed of Sale or Contract to Sell of the property you are applying for
  • Appraisal Report from accredited appraising companies of Home Guaranty Corporation
  • Certificate of Acceptance and Occupancy signed by the borrower in case the property is 100 percent complete
  • Photocopy of Tax Declaration and Real Estate Tax receipts
  • Certified true copy of the title of the property to be mortgaged
  • Lot plan with vicinity map
  • Blue print of the building home
  • Notarized Special Power of Attorney if the filing of application is made via representative
  • Tax mapping or subdivision plan
  • 12 post-dated checks to cover the fees

You may submit your application at the nearest SSS cluster branch or in Housing and Business Loans Department in SSS Building in Diliman, Quezon City.

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Loan Sharks: How to Spot Them and Tips to Avoid Them

Have you seen the Filipino TV series On the Wings of Love? There was a scene there when a man went to Clark’s (portrayed by James Reid) apartment and demanded for money. Threats were even made in case Clark is unable to pay on time.

Believe it or not, that scene happens in real life, especially in the lives of OFWs. Difficult times and immediate need for money will lead migrant workers to people known as loan sharks to be able to send money back in the Philippines or finance certain expenses.

The good news is you can avoid that – and save yourself from stress and harassment. Who are Loan Sharks?

Loan sharks can be a person or entity that allows you to borrow a certain amount of money and charge with higher interest rate, usually above established legal rates. They are also illegal financing companies that usually targets people who are in desperate need of money.

Apparently, sky-high interest rate is just one thing you have to deal with. When you borrow money, say P10,000, you can’t get the entire amount. Interest rates are already deducted at the beginning of the transaction. If you are unable to pay on time, loan sharks often harass you through blackmail, intimidation, and threats.

How to Deal with Loan Sharks

Let’s say you are really in need of cash and loan sharks are your best option at that moment. Here are tips on how to deal with them:

  • Try your best to repay them as soon as you can. It is still your responsibility to pay what you owe and at the same time,  save you from their harassment and threats.
  • Know your rights not just as a consumer but also as a person – and make sure you let them loan sharks know that you are aware of such rights.
  • Seek help from authorities in case you or your family’s well-being is being affected.

Tips to Avoid Borrowing from Loan Sharks

Thankfully, there are ways available to help you avoid dealing with loan sharks. Here’s what you can do:

  • Always set a budget for everything – your daily expenses, money to be sent to the Philippines, and savings – and make sure to stick to it.
  • Try your best to save. You will never know what will happen and in case of emergencies, you have something to use for you or your family.
  • If borrowing money is needed, check the licensed and reputable lenders near you, compare their rates and payment terms, and determine which of them is more helpful.
  • Consider borrowing from a credit union or closest friends – and make sure you pay them back as soon as you can.
  • Encourage your family to save instead of spending. Set up a savings account and make sure the funds in it will only be used for emergency purposes.
  • Grow your money through various investment channels. It can be time deposit, UITF, mutual fund, or stock market.

The bottom line is with proper money management, you will have enough for the rainy days in case something happens.

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OFW’s Guide on How to Get a Housing Loan from PAG-IBIG

There are many reasons why you work abroad. At the end of the day, it’s about providing a better and secure life and future for your family. To achieve this, you have to put your money in the right investments, including a home you can call your own.

If OWWA has an OWWA Loan to help all Overseas Filipino Workers to put up their own business, PAG-IBIG has a Housing Loan designed specifically for every bagong bayani. 

Here’s what you should know about PAG-IBIG Home Loan eligibility, requirements, and everything in between:

Get to Know PAG-IBIG Home Loan for OFW

The Home Development Mutual Fund (HDMF) is a program of the government established to provide affordable housing loan schemes for OFWs. As a member of PAG-IBIG, you can borrow as much as P6 million, depending on your housing needs and your capacity to pay.

  • Keep in mind that the PAG-IBIG home loan is obtained for the purpose of acquiring a housing property, improving an existing unit, or refinancing an existing loan. The property can be a residential area, condominium unit, or unit that calls for further construction. Consequently, you can use the funds to pay for brand-new, previously mortgaged with HDMF, or under a rent-to-own program.

OFW as an Eligible Borrower

In case you want to avail of the Home Loan of PAG-IBIG, you should be able to present the following:

  • Employment Contract, with English translation if the contract is written in foreign language
  • Original Employer’s Certificate of Income. In case you don’t have the original, photocopy is acceptable provided it is duly validated and certified by HDMF Information Officer assigned in the country where you work.

PAG-IBIG Home Loan Requirements

Make sure you have the following documents when applying for a Home Loan:

  • PAG-IBIG Home Loan Form or Application with attached recent ID picture
  • Membership Status Verification Slip (must have remitted at least 24 months contribution or pay in lumpsum if you are a new member who wants to avail of housing loan)
  • Proof of Income such as employment contract, original employer’s certificate, or any other documents to prove such income as long as duly validated and certified by HDMF Information Officer assigned in the country where you work
  • Photocopy of one valid ID of the borrower. A photocopy of one valid ID is likewise required on spouse, co-borrower, or Attorney-in-Fact, whichever is applicable
  • Duly signed Authorization to Conduct Credit Background Investigation
  • If abroad, Special Power of Attorney notarized before the date of departure or duly certified and authenticated by the Philippine Embassy or Consulate in the country where you are working
  • Health Statement Form and Full Medical Examination for borrowers above 60 years old or loan amount of more than P2 million – This form is available at any PAG-IBIG Regional Branch, Members Services Support Division – Servicing Department if you are from Metro Manila, or downloadable online
  • Marriage Contract, if borrower is married
  • Certificate of No Marriage (CENOMAR), if you are single
  • Birth Certificate or any proof of relationship if you have co-borrowers

Apart from the documentary requirements, you also have to prepare the following technical requirements:

  • Certified true copy of the latest TCT/CCT by the Registry of Deeds
  • Location Plan and Vicinity Map of the property
  • Photocopy of Tax Declaration and latest Real Estate Tax Receipts

Depending on your loan purpose, you must also present the following requirements:

  • Purchase of Lot / Residential Unit – Contract to Sell or similar agreement between the buyer and seller
  • Construction of House / Home Improvement – Building plan and Specification and Bill of Materials signed by licensed architect or civil engineer
  • Refinancing – Statement of Account on outstanding loan balance and indicating loan purpose, and any of the following: official receipt for the last 12 months, valid proof of payment for the last 12 months, or subsidiary ledger

PAG-IBIG Home Loan Process

Here is a step-by-step procedure on how to apply for PAG-IBIG Home Loan:

1. Attend a Loan Counselling with a PAG-IBIG Information Officer in the PAG-IBIG Office near you.

2. Fill up application forms like Housing Loan Application (HLA) and Preliminary Loan Counseling Questionnaire (PLCQ). You will also be asked to fill up a medical questionnaire if you are above 60 years old or applying for a loan amounting to P2 million above.

3. Submit the required documents and pay the non-refundable fee of P1,000

4. PAG-IBIG will review your loan application within 20 days. This period will also cover property valuation and credit investigation.

5. If approved, you will received a Notice of Approval or Letter of Guaranty. You must give any of the documents to the property seller and pay the Capital Gains Tax (CGT) at the BIR within 90 days. A Certificate of Authorizing Registration (CAR) will be released upon payment of CGT.

6. Pay for the Transfer Tax in the local government where the property is located.

7. Proceed to the Registry of Deeds (RD) to transfer the title. An updated tax declaration and Occupancy Permit will be given by the Assessor’s Office and Engineering Office, respectively. In case you are using the funds for refinancing, present the Letter of Guaranty and Loan and Mortgage Agreement to the bank where the loan was initially coursed through before going to the Registry of Deeds for annotation on the title.

8. Submit the following documents to PAG-IBIG: Original TCT in the name of the borrower and with mortgage annotation on it, Deed of Absolute Sale with stamp from RD, new tax declaration in the name of the owner, updated Real Estate Tax receipts for land and improvement, Occupancy Permit, and Assignment of Loan Proceeds (will come from PAG-IBIG).

Now that you survived the documentation and loan process, make sure you pay the monthly amortization on time. Congratulations!

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4 Common OFW Money Mistakes (And Tips on How to Avoid It)

According to POEA’s latest OFW statistics, more than 1.8 million workers were deployed in 2015, which is higher compared to 2014. With millions of workers working overseas and earning in dollars for a living, how come more and more Filipinos are willing to seek for greener pastures and leave the country for better employment?

There are various factors for this phenomenon and one of this is poor money management. Blame it on the “culture,” but not all OFW families are able to put remittances in savings or investments.

Here are common money mistakes committed by OFWs – plus tips on how to avoid it: 1. Over-remitting

Most OFWs do their best to minimize spending and send a big chunk of their salaries to their families back home. Unfortunately, you don’t know where the money is going and yet, you keep on sending. In case something happened to you, you only have little left on your savings since almost everything is sent to your family.

How to solve it: Set a budget for yourself, your savings, and remittances – and stick to it. Don’t feel obligated to cover the medical or educational expenses of your mother’s cousin’s daughter. More importantly, encourage your family to invest the money or put up a small business you can all manage to reduce your remittances.

2. Keeping up with the Joneses

Working overseas increases your purchasing power. You are earning more than what you can earn in the Philippines, which means a new pair of sneakers or buying that watch you’ve been eyeing for years won’t make a big dent in your salary. Unfortunately, this mentality will lead you nowhere and before you know it, you are unable to save something for yourself.

How to solve it: Take it easy on your spending even if you are earning more. You don’t need a new pair of shoes or send Balikbayan boxes full of signature brands to your family every month. Remember, budgeting is key, so make sure you stick to that.

3. The pasikat mentality

Every time you go home, it’s a celebration. All your family, friends, and relatives will show up and ask you about life abroad. The harm starts when you always pay for everything – restaurant bills, tickets, and shopping with the family.

How to solve it: Being man of the hour is great, but you don’t need to answer for all the expenses while you’re in the Philippines. Go back to setting a budget before going home and make sure that all expenses are accounted for. You don’t need to treat everyone just because they get to see every two years only.

4. Wrong investment choices

Putting your money in a savings account is fine since cash is readily available. Nonetheless, placing your hard-earned money in savings alone will not yield extra income.

How to solve it: Don’t put all eggs in one basket. Explore various investment options such as UITF, real estate, or stock market, and know the corresponding risks and returns to help you find out the best ones for your money.

Remember that life as an Overseas Filipino Worker will not last forever. Take note of these mistakes and make sure you follow the how to avoid tips to help you save for the rainy days.

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8 Business Ideas for OFWs (Even While Working Overseas)

Working overseas may promise you a better life since you are earning more than what you can earn in the Philippines. Still, this doesn’t mean you should be complacent. After all, what you earn from working overseas is only as good as the effectivity of your employment contract.

The good news is there are some things you can do to ensure continuous and steady income for your family. Check out these simple start-up business ideas you can try and who knows, you don’t need to go work overseas anymore: 

1. Online Shop / Store

One good thing about technology these days is the ability to reach out to people and make them aware of your product or service at the comfort of your home. Take advantage of Internet and social media, and put up your own online store.

What to sell is endless. You can start monetizing your hobbies or interests and sell or showcase them in various online selling channels. The good thing about this is that you are able to do something you love and make money out of it.

2. Buy and Sell

If you don’t have time to do crafts or offer your services, buy and sell can be a great option to help you earn extra income. You can do this by buying items from the Philippines such as Filipino delicacies and selling them to the country where you are working or buy imported products and ship it in the Philippines.  The more unique or authentic the products are, the better.

You might need some extra hand from your family or relatives to help you with the inventory, coordinating of orders, and shipping.

3. Food Cart Franchise

This is a great startup business because you don’t have to worry about what dishes to whip and a big space where your customers can sit.

The good thing about food cart franchising is that you can start small. In fact, P25,000 investment allows you to start your own food stall and at the same time, helps you develop and experience entrepreneurial and managerial skills while earning a steady income. Still, location and food stall to manage are crucial, so make sure you choose wisely.

4. Rent a Room

If you happen to have extra room in your apartment, consider renting it to fellow OFWs. The rental income you can get will help defray your expenses while allowing you to earn something extra.

5. Sari-Sari Store / Mini Grocery 

You might say it is common, but sari-sari store could be helpful in case you are looking for additional income. This cash-generating business is easy to manage and you or any member of your family can run it at the comfort of your home.

Tip: Sell imported goods in your sari-sari store at an affordable price. This will differentiate your stores from many others and may attract more customers. 

6. General Cleaning Services

If you worked in hotels or resorts, consider putting your housekeeping skills to good use by offering general cleaning services.

You can start with something more manageable such as laundry services. Eventually, move on to housekeeping such as cleaning, vacuuming, window washing, and mopping. If you are able to generate enough income, hire one or two people to help you or train any of your family members or add cleaning tools that will make your job easier.

7. Food Retail

Franchising can be a good startup, but if you prefer making your own dishes, then that’s fine.

For starters, set up your own carenderia or consider delivering food to various business establishments. Baking goodies can be another option, especially if there is someone in the family who loves to bake. If you are willing to take a risk, venture into food business by opening your own stall or restaurant.

8. Stock Market

Believe it or not, investing in stock market is not that complicated. You might have to read some materials to help you better understand how the system works. Over time, you will be able to see the results of your investment.

Similar to other businesses, just be patient. Make sure you won’t invest all of your hard-earned money in stock as well.

These business ideas can help generate additional income. Still, you will get to enjoy these benefits if you are able to manage it properly. Choose a business that you or your family can handle, give the business some time where you can earn, and be patient. Return of investment don’t happen overnight.