We have previously looked at Mortgage financing as the go to financing option if you don’t have enough income or savings to buy an apartment. Our first article (https://buildnet.co.ug/what-is-mortgage-financing-here-is-what-you-need-to-know/) focused on understanding what mortgage financing is. Today we are looking at who qualifies for a mortgage. Enjoy the read.
Acquiring a mortgage is no longer as challenging as it was before, since most banks today understand the importance of quick loan processes. Therefore, most people can qualify for a mortgage.
What are the requirements of acquiring a mortgage?
Credit History; any lender/bank would like to know your history. Even if you have not banked with them before, they will get that information from other related institutions just to understand. This does not mean it is hard for you to get a loan if you have taken one before. In fact, it is an advantage. The only concern here would be your payment history. Did you pay the loan well as agreed, are you still in the process of paying or did you fail to pay? In case of failure to pay, how did you handle the situation? Did you try or did you just disappear? All these are questions are lender will want to understand.
If you have never gotten a loan before, your financial history is checked to understand the flow of money on your account.
Income; you might not be able to pay a lumpsome but have cash flow from somewhere, for example your salary or a business that brings in some money, a number of units that you rent out among others. What is important is that you have money coming in that you can use to facilitate the mortgage consistently/constantly.
Account; you need to have an account with the bank that you want to give you the mortgage. Initially banking institutions required that you bank with them for at least 6 – 12 months when you open an account. However, things have changed today; you can open an account and the mortgage process is started immediately. Therefore not having an account should not be a hindrance for one to acquire a mortgage.
Collateral; this is the security that is worth or greater in value than your mortgage amount requested that you give to the bank so as to acquire the mortgage.
Initial deposit; in some banks you can receive 80% mortgage payment. This requires that you make an initial payment of 20% whereas other banks can offer 100% mortgage payment depending on your financial history with them. You are at an advantage if you have received and completed a mortgage with them or if you are currently paying a mortgage in which case it is easier to top up and receive 100% payment.
Mortgage payments can go up 15-20 years depending on the Bank and client’s payment capacity.
MORTGAGE FINANCING PROCESS AT BUILDNET WITH ANY BANK PARTNERS:
On top of the listed requirements for mortgage qualification, at Buildnet these are the basic requirements.
- Initial deposit of 20% upon which we sign a sales agreement highlighting the property details as well as terms of payment.
- A copy of the sales agreement which you or we provide to the bank for mortgage processing.
- A copy of the condominium title from Buildnet specifying the Unit Number you have paid for.
If you have anything to add to this article, please feel free to comment below and for any inquiries, email us at firstname.lastname@example.org