In today’s civilized world the average rich Nigerian or person in the world does not have to own his/her whole housing plan (or burden) all by him or herself. He or she can choose to exercise options, leverage on his equity or share of ownership and to do this, he or she requires an enabling mortgage system in place, which is working, up and doing.
It is always easy for people to jump towards anywhere there seems to be free money, but what about the catch, is there any trap?
Do you understand the terms and conditions properly?
It is always wise to know what to expect, don’t be fooled by the terminologies financial experts use to confuse novice(s). you will need to know the obstacles you will face and how to remove them. That is why we have put together this article to educate you on the 5 things you should do.
1. Make sure you do a careful search through an estate surveyor and valuer who knows his onion well so you are not sold a bad property; as some simple people fall into the hand of fraudster in their pursuit of owning or purchasing land property. Make sure your surveyor or researcher come highly recommended and has enough experience.
2. Find out why the property you are interested in is been sold, you don’t want to purchase what other people are trying to dispose off. Check very well to secure a mortgage, set a timeframe, and know the procedures and the right steps to take.
3. Talk to one, two or more banks to have comfortable comparative analysis that will give you an advantage in the course of your goal setting and getting it. You should have enough options to choose from. Also consider the penalty clause to redeem your mortgage. This should give you a flexible plan option to pay off your mortgage or negotiate interest charges with your bank.
4.Be wise about the documentation, processes, protocols and do your due diligence to the check list and all other criteria such as property description, aerial photographs, if it is an existing property in hard and soft copy, Architectural drawings, bill of quantity, the application process, information to the bank about your earning ability or capacity, expenditures and pattern. The bank will ask you this before they tell you how much they can advance you. You can also do a cash flow analysis of yourself, your profit and loss account and your personal balance sheet.
5. Understand and review clauses banks imposing their estate surveyor & valuer or agents to search value or other services. Be settled about the payment options i.e. down payment to keep seller happy. And don’t forget Deed of assignment transfer from seller to buyer and the proceedings for final payment.