Residential Estates: What to Do Before You Apply for a Home Mortgage
In a nutshell, mortgages are used by individuals and businesses to make huge residential estate or commercial estate purchases without making a one-off payment. This will either have a fixed or floating interest rate and can run up to 3-30 years. Funny, right? Here’s a more interesting fact about that. Ever wondered where the term “mortgage” originated? Furthermore, have you ever thought about what does it mean?
We hope, you’ll not be surprised when we say it came from the old French language: “mort” meaning dead, and “gage” meaning pledge. In short, mortgage literally means “dead-pledge”. Truth be told, most Nigerian assumed that paying off of their debt would last until their death. On the brighter side, on behalf of Property List Hub, we would certainly hope you get your mortgage paid off earlier than expected.
Residential Estates: Home Mortage
In today’s article, we will highlight all you need to do before you proceed to apply for a Home Mortgage.
- Property for Sale in Lagos. Look around the neighborhood. Gather all the necessary information about the residential estate in Lagos. Look for affordable property in Lagos. You can do this by creating a list of potential compromises, and deciding how long you wanted to pay for.
- Read the terms and conditions carefully. Basically, every lending institution must possess a legal document containing the terms of the housing loan. Upon reading, make sure you fully understand the terms before securing a loan. If it appears that the interest rate is way too high, try to see if you can possibly get a better interest offer elsewhere. You can also ask for the legal assistance of your lawyer for security.
- Save Enough Money. You are likely to deposit an amount on any home you are looking forward to buying. Take note that initial deposit in residential estates varies. While it can be as little as 5% to over 50%, it solely depends on the property owners and the financing institutions. You better ask about this matter to the concerned person or you’re clueless. Know that the lower your mortgage is, the less likely your property to fall into negative equity. Meaning, the property’s value falls below the amount you owe on the mortgage. Hence, the financial institution will feel more confident that they will receive their money back (not to mention, you have more savings to put down, and owns a higher portion of equity). Do not forget to save up for any cosmetic updates or repairs of the residential estate in the future.
- Look for house buying schemes. Nigeria has various schemes that can help you in buying a home. Like for example, you have the National Housing Fund. This financial institution aims to provide excellent financing solutions to the contributors of the scheme.
- Ensure mortgage affordability. Mortgage affordability is imperative. As much as you wanted to commit to it in the short-term, you can’t. Remember that a mortgage is a long-term commitment. It involves years not months of commitment, so you better do your research properly to get the best results. Subtracting your monthly expenses from your income to see how much you can allot for a mortgage each month is a good thing. On the other hand, you can calculate it easily on a website of the financial institution.
Final Note: You are eligible for getting a mortgage if: (1) you are formally employed, on a full time and permanent basis; and (2) you have saved for sufficient deposit (any bad outstanding loans or history of such is prohibited)
Looking for property for sale in Lagos, (or anywhere in Nigeria?) with mortgages available or payment plans? Property List Hub can help. Call us and let’s get talking today: +234 901 552 5389