Our previous post analyzed how mortgage loans can be secured in Nigeria, what is required to secure one, and the list of mortgage institutions to consider. However, securing your dream house with a mortgage can be quite difficult. This article will educate you on processes on how to buy a house with a mortgage in Nigeria.
Below are the process of how to buy a house with a mortgage in Nigeria
- Save an initial deposit: Initial deposit of the house you want to buy varies and this depends on the real estate company or developer you are approaching. Also, you need to be aware of the requirement of the mortgage institutions you are approaching.
- Ensure you can afford it: Making more research on mortgage terms and conditions will also go a long way as it tends to make you more knowledgeable. Usually, repayment of mortgages is required for a certain number of years. You need to be sure if your income can afford to pay back the mortgage. In addition, some mortgage institutions especially banks have mortgage calculators on their websites which will go a long way in allowing you to understand how much you can pay as regards mortgage each month.
- Identify house buying schemes: House buying schemes are aimed at helping home buyers get access to mortgage loans at a subsidized interest rate. E.g Federal Housing Authority (FHA) mortgage bank, a primary mortgage institution that aims to mortgage facilities to individuals and corporate bodies towards financing, acquisition, renovation, and development of dwelling houses, and commercial and industrial properties.
- Start sourcing for properties: When looking for properties, ensure you looked for properties that can be financed through a mortgage. Usually, off-plan projects or properties have mortgage plans in place. Also check; Important facts you should know about buying off-plan property in Nigeria.
- Getting a mortgage loan: After making a deposit, you can now secure your loan with the right financial institution. At this stage, you are required to read the terms and conditions thoroughly before you sign any papers. It is also pertinent to ask questions where necessary.
Obstacles that hinder securing a mortgage in Nigeria
The following are factors that might hinder how you can secure mortgages in Nigeria
- Lack of knowledge and experience on how to secure and manage one.
- Lack of knowledge on the smaller deposit that needs to be set aside for initial mortgage deposit.
- No collateral is needed for the loan you wish to obtain.
- Lack of research on mortgage institutions.
Securing a mortgage in Nigeria can be difficult if not well-informed. This is why you need to ask questions where necessary and seek the knowledge of an expert if required. Are you willing to buy a house with a mortgage in Nigeria and you don’t know how to go about it? Seek the help of Thinkmint Nigeria to help you out.