Simple Mistakes to Avoid that People do When Taking a Home Loan
October 25, 2021, 3:45 pm Blog Taxation and Loan Seen: 1610
There are simple mistakes to avoid that people do regularly when taking a home loan. Home loan takers ignore some common things they should do and check before embarking on loan taking, these things turn around on them in course of the life of the loan. Do you want to buy your dream house but don’t have available funds? Going for a home or house loan to achieve that is the best option for you, because waiting to save up the money with time to buy a home seems impractical. As you save with time, challenges come up that will take up that amount you have saved, also other needs could arise that will need that money more.
Home loan in Nigeria is available, some institutions and organizations give out, though sometimes it's easy to get based on the organizations while to some it's not easy. Some organizations can give home loans to you based on a particular interest. It is most ideal for you to first study the home loans rules and regulations, understand and verify the terms and conditions in order to get the loan that suits your needs. One must be precautious and should seek the help of professionals and experts in that field in order to get a loan from a source that is authentic and from the organization that is offering the best amongst its contenders.
Below are some Simple Mistakes to avoid that People do When Taking a Home Loan. These mistakes are what everyone should stay clear of while applying for the loan in Nigeria.
- Finance Miscalculation
- No reasonable fund for down payment
- Failure to finalize the Property first before Finalizing the lender
- Failure to engage or do a proper research
- Failure to buy any property or life insurance
Finance Miscalculation:
Finance miscalculation is a mistake most people do when going for a home loan in Nigeria and abroad. This mistake is committed always by home loan takers while getting a home loan. They assume that just because they are going for a loan, they can ask for the maximum amount that they are eligible for. It is important that one should first and foremost go through his savings, calculate his long term and short term expenses and then finalize a budget that is suitable for him or her. One may be eligible to opt for a loan, but repaying it may be difficult, therefore it's advisable you only take a loan that you can easily repay while living a normal and comfortable life in order to avoid stress and anxiety which may lead to some serious ailment.
No reasonable fund for down payment:
Most people take up home loans without having enough funds for down payment, it's wrong and it is a common mistake people make while buying a home property. Majority of people just assume that they can go ahead with a real estate property purchase without sufficient funds for down payment. While the loan may be covering a reasonably large amount of money that is going into the buying of the home, it is imperative to have some amount as a down payment while opting for a home loan in Nigeria.
Failure to finalize the Property first before Finalizing the lender
Home loan takers make this very mistake of failing to finalize the property first before finalizing with the lenders. Most often people are curious about the process and their eligibility, and go to finalize with the lender first. This is a wrong practice and should be avoided. The right thing is to first and foremost finalize the property, do thorough research on it, check its authenticity legally and then apply for the loan. Passing through these processes will prevent any chances of rejection that may occur if the property is not verified or if it is not up to the satisfaction of the lender. You can just think and imagine what a tedious and futile process it will be if you have chosen the bank first, done all your research on it and then your loan gets rejected due to the property that you have chosen. To avoid any form of rejection, it is always advised to choose a property first and then apply for a home loan in Nigeria.
Failure to engage or do a proper research
Before going for a home loan there is need to do a proper research on the property and loan itself. People often go for a certain loan from a bank or lender just based on recommendations and suggestions from their friends or family without proper research and study. Also people go into taking home loans based on expectations. Each person’s eligibility, repayment capacity, and needs are different and it is very important to choose a lender who is offering the best pertaining to your needs. Doing proper study on the home loan rules and regulations, comparing them and seeking the help of a legal consultant in order to verify the authenticity of the lender is crucial. It is an extremely important part of getting a home loan, but many don't follow those processes, thus regretting later after going for the scheme that is not convenient or suitable to their needs and capacity.
Failure to buy any property or life insurance
Most people make the mistake of not having any property or life insurance policy before going to get a home loan from any organization or institution. Just imagine a case where you have collected a huge loan and a medical emergency comes up, what would you do? This situation can be really worrisome as a large amount of one’s earnings is dedicated to paying off the home loan. Taking care of unexpected medical expenses can become a challenging task. Most people fail to understand the importance of health and life insurance in this case. If you are seeking to get a loan, you must first ensure yourself and your family so that your well-being is not compromised due to the home loan that you have taken. Likewise, it is also important to take property insurance to make sure that the individual is not left financially bankrupt in case of any damage due to natural disaster or likely events.
Taking a home loan is something whoever wants to go into should apply all levels of care, not something one should do carelessly. What we pointed out is just some of the many mistakes that everyone should avoid making while opting for a home loan in Nigeria. You have to know that your lender is out purely for business, they are not smiling at all, den ney dey mercy you if any fuckup comes out. Taking all the right precautions and getting the organization that is offering a suitable interest that you can pay for with ease will help you have peace of mind and a comfortable life in the long run without any wahala.
Home loan in Nigeria is available, some institutions and organizations give out, though sometimes it's easy to get based on the organizations while to some it's not easy. Some organizations can give home loans to you based on a particular interest. It is most ideal for you to first study the home loans rules and regulations, understand and verify the terms and conditions in order to get the loan that suits your needs. One must be precautious and should seek the help of professionals and experts in that field in order to get a loan from a source that is authentic and from the organization that is offering the best amongst its contenders.
Below are some Simple Mistakes to avoid that People do When Taking a Home Loan. These mistakes are what everyone should stay clear of while applying for the loan in Nigeria.
- Finance Miscalculation
- No reasonable fund for down payment
- Failure to finalize the Property first before Finalizing the lender
- Failure to engage or do a proper research
- Failure to buy any property or life insurance
Finance Miscalculation:
Finance miscalculation is a mistake most people do when going for a home loan in Nigeria and abroad. This mistake is committed always by home loan takers while getting a home loan. They assume that just because they are going for a loan, they can ask for the maximum amount that they are eligible for. It is important that one should first and foremost go through his savings, calculate his long term and short term expenses and then finalize a budget that is suitable for him or her. One may be eligible to opt for a loan, but repaying it may be difficult, therefore it's advisable you only take a loan that you can easily repay while living a normal and comfortable life in order to avoid stress and anxiety which may lead to some serious ailment.
No reasonable fund for down payment:
Most people take up home loans without having enough funds for down payment, it's wrong and it is a common mistake people make while buying a home property. Majority of people just assume that they can go ahead with a real estate property purchase without sufficient funds for down payment. While the loan may be covering a reasonably large amount of money that is going into the buying of the home, it is imperative to have some amount as a down payment while opting for a home loan in Nigeria.
Failure to finalize the Property first before Finalizing the lender
Home loan takers make this very mistake of failing to finalize the property first before finalizing with the lenders. Most often people are curious about the process and their eligibility, and go to finalize with the lender first. This is a wrong practice and should be avoided. The right thing is to first and foremost finalize the property, do thorough research on it, check its authenticity legally and then apply for the loan. Passing through these processes will prevent any chances of rejection that may occur if the property is not verified or if it is not up to the satisfaction of the lender. You can just think and imagine what a tedious and futile process it will be if you have chosen the bank first, done all your research on it and then your loan gets rejected due to the property that you have chosen. To avoid any form of rejection, it is always advised to choose a property first and then apply for a home loan in Nigeria.
Failure to engage or do a proper research
Before going for a home loan there is need to do a proper research on the property and loan itself. People often go for a certain loan from a bank or lender just based on recommendations and suggestions from their friends or family without proper research and study. Also people go into taking home loans based on expectations. Each person’s eligibility, repayment capacity, and needs are different and it is very important to choose a lender who is offering the best pertaining to your needs. Doing proper study on the home loan rules and regulations, comparing them and seeking the help of a legal consultant in order to verify the authenticity of the lender is crucial. It is an extremely important part of getting a home loan, but many don't follow those processes, thus regretting later after going for the scheme that is not convenient or suitable to their needs and capacity.
Failure to buy any property or life insurance
Most people make the mistake of not having any property or life insurance policy before going to get a home loan from any organization or institution. Just imagine a case where you have collected a huge loan and a medical emergency comes up, what would you do? This situation can be really worrisome as a large amount of one’s earnings is dedicated to paying off the home loan. Taking care of unexpected medical expenses can become a challenging task. Most people fail to understand the importance of health and life insurance in this case. If you are seeking to get a loan, you must first ensure yourself and your family so that your well-being is not compromised due to the home loan that you have taken. Likewise, it is also important to take property insurance to make sure that the individual is not left financially bankrupt in case of any damage due to natural disaster or likely events.
Taking a home loan is something whoever wants to go into should apply all levels of care, not something one should do carelessly. What we pointed out is just some of the many mistakes that everyone should avoid making while opting for a home loan in Nigeria. You have to know that your lender is out purely for business, they are not smiling at all, den ney dey mercy you if any fuckup comes out. Taking all the right precautions and getting the organization that is offering a suitable interest that you can pay for with ease will help you have peace of mind and a comfortable life in the long run without any wahala.
More from Propertypointng Blog
About the Author: PPN Blog
