What to do when your Pag Ibig loan has been approved.

This is applicable for Privately Owned Lot or Residential unit sold to an individual only

When Pag Ibig staff calls you that your loan has been approved. What's the next step?

1. You have to go to Pag Ibig office and get the following:

a. Promissory note Documents
b. Loan Mortgage Agreement
c. Copy of Letter of Guarantee
d. Notice of Approval
c. Loan Proceeds Assignment

2. Transfer the title of the property to the borrower. Note that Pag Ibig will not release the loan not until the title has been transferred. You have 90 days to transfer from the receipt of the Documents listed above. Should you not be able to transfer within 90 days you have to ask for an extension.

For Extension: Submit an extension letter at the 7th Flr room 101

How to transfer the title and annotation of mortgage:

1. Notarized the Promissory Note, Loan Mortgage Agreement, and Deed of Absolute Sale( In our case we initially made a conditional deed of sale and later when we got approval of the loan we changed it to Deed of Absolute Sale)

2. Proceed to BIR for payment of the capital gain tax (6% of the zonal value or selling price whichever is higher) and documentary stamps (1.5% of zonal value or selling price which ever is higher. You have to provide the following:

a. Certified true copy of the title
b. Notarized Deed of Sale and Loan Mortgage Agreement
c. Tax Declaration of the land/improvements
d. Tax Clearance
e. Special Power of Attorney for representative (If applicable)

This is to secure the CAR (Certificate of Authorizing Registration) and Documentary Stamp. Normally it takes 15 days before you can get this certification.
3. Proceed to the Municipal Govt' (Assessors Office) for payment of transfer of tax. Get the Tax Reciept (have it photocopy when you recieved it)

4. Proceed to Registry of Deeds for the Transfer of Title. You have to provide the following documents:

a. Original Title (will be surrendered)
b. Notarized Deed of Absolute Sale
c. Transfer of Tax Reciept (photocopy)
d. Special Power of Attorney if applicable

5. Proceed to assessors office for the application of new tax declaration under the present owner

6. Go back to Pag Ibig with the following Documents:

a. Deed of Absolute Sale with RD Stamp
b. Loan Mortgage Agreement with RD Stamp
c. Special Power of Attorney with RD Stamp (If Applicable)
d. Certified True Copy of the Present and Cancelled Title

7. Wait for 5 days to recieve the loan proceeds.