A Guide On How To Get Approval For A Mortgage In Kenya

An image of a mortgage seller in Kenya demonstrating how to get mortgage approval in Kenya

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Mortgage in Kenya

You just came along a listing of mortgage houses in Syokimau that interest you, what do you do next? Well, good news is that there are several banking institutions helping Kenyans own their dream homes through mortgages. You can get started by requesting a mortgage calculator Kenya from a lender of your choice.

Here is a guide to help you with your mortagage process in Kenya. 

For starters, a mortgage is a loan given to a borrower by a lender to facilitate the purchase of land or a house. The lender possesses the land title until the borrower is through paying the mortgage, failure to which the lender has every right to retain the land or house as a way of recovering unpaid loan and incurred interests.

If you have a consistent flow of income, it is easy to get a mortgage in Kenya. It is also easy to find a dream home given the current competition in real estate in Kenya. What does the process of getting a mortgage look like? If you are eyeing one among the many mortgage houses for sale in Nairobi, this is how you should go about it:

Appraisal

This is whereby your lender castigates or rather assesses your financial background in order to determine the loan amount you are eligible for. It is at this moment that you are notified of the amount you qualify for, after some of the financial aspects have been scrutinized by the lender such as your income, age, credit score, among others. At the end of the assessment, you are either given an offer or declined.

Property Hunting

After knowing how much your lender is willing to offer you, the next step is searching for property that falls within the given quote. Using a trusted real estate agency is recommended as they can easily find you a house that falls within your budget. Lesama real estate for instance has for several years now been helping people acquire homes of their choice. There are several other real estate companies in Kenya at your disposal too. 

Offer Processing

Once you have picked out your desired property, it is time for the lender to give you an offer. Before the offer is given, your lender will request some documentation from you for proof that you are financially and legally stable to get a loan such as, land title, life insurance, copy of marriage certificate (for married couples), KRA pin, latest pay slips for employed persons, etc. You are then given an offer in form of a letter with laid down terms and conditions of the loan you will be awarded, and you are supposed to go through them and accept them for the process to continue.

Release of Relevant documents

This happens after a sale agreement has been made official by both parties. Also known as perfection of instruments, this is the part where the borrower surrenders all relevant documents mainly property title among other documents to the lender for custody until the whole loan payment is completed.

Payment

At this juncture, the lender proceeds to release the borrowed sum to the borrower or the party that is selling the property all depending on the agreed terms.

It is very important to get in touch with a professional mortgage advisor for guidance where things are not clear. It much easier when you clearly understand what you are getting into, because getting a mortgage can be an overwhelming process. Mortgage advisors are also familiar with mortgage houses in Nairobi as well as mortgage rates offered by various lenders.

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