What are the Steps to Apply for Mortgages in Nigeria Using Banking Apps? You can apply for mortgages in Nigeria through banking apps.
this is a modern way of applying and has many benefits. first, it saves you a lot of time.
Instead of going to the bank in person, you can do everything from the comfort of your home or office.
With just a few taps on your phone, you can submit your application, check your status and get updates. it’s faster and more convenient especially for busy people.
Using banking apps also gives you easy access to mortgage options.
You can compare different plans, interest rates and repayment terms and choose the one that suits you best. it’s easier to make a decision.
Banks also offer special deals or discounts to customers who use their mobile apps which could save you money in the long run.
it’s more secure too. banking apps use encryption and other security features to protect your personal and financial information.
Fraud is a big risk when dealing with huge money.
all in all applying for a mortgage through a banking app is faster, easier and more secure.
It’s a convenient option that fits into your busy schedule and has more benefits than the traditional way.
Steps to Apply for Mortgages in Nigeria Using Banking Apps
1. Have a Verifiable Source of Income
Before you apply for a mortgage loan you need to have a steady and verifiable source of income.
Banks want to be sure you can repay the loan over a long time and they check your income to verify this. They ask for bank statements for the past 6 months to confirm your earnings.
Having a stable income is key because without it you can’t qualify for a mortgage loan. For salaried individuals your monthly salary should be reflected in your bank statements.
For business owners providing proof of regular income through business transactions is necessary. With the banking app you can access and share your income details without having to visit the bank.
2. Check Your Credit Score
In Nigeria, lenders use your credit score to determine if you can pay back loans. A good credit score means you’ll get approved for a mortgage loan. A bad credit score or loan defaults will make it hard to get a mortgage.
You can check your credit score on banking apps with just a few taps. Some banks have this feature on their mobile apps where you can see your credit score and track it.
If your credit score is not good, it’s better to work on it before applying for a mortgage. This might mean paying off outstanding debts and ensuring your bills are paid as at when due.
3. Find a Property Within Your Means
Once you have a steady income and good credit score, the next step is to find a property within your budget. Be sure to find a property you can afford so you don’t take on more debt than you can handle.
You can use real estate websites to search for properties but banking apps can also help. Many banking apps have property search feature where you can browse through properties that fit your budget and preferences.
You can filter the search results by price, location and other criteria. When choosing a property, make sure it has valid legal documents like Certificate of Occupancy or Deed of Assignment as these are required for the mortgage application.
4. Save for Your Equity
In Nigeria, mortgage lenders require you to make an equity contribution before you can get a loan. This is usually 20-50% of the property value depending on your creditworthiness.
The equity contribution is important because it shows you’re financially responsible and have a stake in the property.
If you don’t have the full equity amount saved up, don’t worry. Many banks now have savings programs on their mobile apps to help you save for your equity.
Like, some banks have savings products that allows you to save for your down payment gradually. These are designed to work with your income so you won’t feel overwhelmed
5. Use the Bank’s Loan Calculator
Most banks have a loan calculator in their app that allows you to check how much you can borrow based on your income and other factors.
This is a great tool to see the total loan amount, monthly repayments and how long you’ll pay it off.
The calculator takes into account your income, interest rate and loan term so you can see how different loan amounts will impact your monthly budget.
Use the loan calculator before you apply for the mortgage to make sure you’re applying for an amount you can repay.
6. Get the Required Documents
Once you’ve decided on the property and you’ve checked the loan is affordable, the next step is to get the documents. The bank will require several documents to process your mortgage application. These documents are:
- A copy of your ID (national ID, driver’s license or international passport)
- Proof of employment or business ownership
- Copy of property title document (Certificate of Occupancy)
- Bank statements for the past 6-12 months
- Letter of introduction from your employer (if employed)
The good thing about banking apps is you can upload these documents directly from your phone.
Many banks have document submission feature within their mobile app so you don’t need to go to the bank. Just take pictures or scan the required documents and upload them through the app for easy processing.
7. Apply through the App
Now that you have all the documents, you can apply for the mortgage loan. Many banks in Nigeria allow you to apply for a mortgage through their mobile app. Log in to your banking app, go to the “Mortgage” or “Home Loan” section.
The app will walk you through the application process. You’ll fill out a form with your personal and financial details, upload your documents and submit your application.
You’ll usually get an instant acknowledgement and the bank will start processing your loan request.
8. Check the Status of Your Application
Once you’ve submitted your mortgage application, you can track the progress through the app. Most banks will send you updates on the status of your application via notifications.
If the bank needs more information or documents, they’ll notify you through the app and you can upload the required documents immediately.
The banking app allows you to stay informed at every stage of the application process, so you don’t have to worry about missing any important updates.
9. Loan Approval and Terms
If approved, you will receive the loan details including amount approved, interest rate, repayment schedule and other terms.
This will be sent to you through the banking app. You can also e-sign the loan agreement, making it even more hassle free.
Please read the terms carefully before signing. Once you accept the terms, the funds will be disbursed and you can start your homeownership journey.
10. Start Repaying
Once you receive the loan, it’s time to start repaying. The banking app makes it easy to manage your mortgage repayments.
You can set up automatic monthly payments or make manual payments through the app. The app will send you reminders of your repayment schedule so you never miss a payment.
Stick to the repayment schedule to avoid penalties and maintain a good credit score. Be consistent with your payments and own your home stress free.
Conclusion
Mortgage loan application in Nigeria has never been easier, thanks to mobile banking apps. Follow the steps above and apply for a mortgage, get the loan and start your homeownership journey from the comfort of your home.
With verifiable income, good credit score, right documents and your bank’s app owning a home in Nigeria has never been this easy.
So go ahead and apply for your mortgage loan today through your banking app. Your dream home is just a click away.
FAQs
1. What is a Mortgage and How does it work in Nigeria?
A mortgage is a loan given by a bank or financial institution to help you buy a house or property. In Nigeria, the loan is collateralized against the property you are buying. This means the bank can take the property if you default. Mortgages have long repayment periods, up to 20 years depending on the terms.
2. Can I apply for a mortgage on my bank’s mobile app?
Yes, most Nigerian banks allow you to apply for a mortgage directly on their mobile banking apps. The apps allow you to fill in the required information, upload documents and track your application. All you need to do is log in to your bank’s app, go to the mortgage section and follow the prompts. This is faster and more convenient than the traditional way.
3. What do I need to apply on a banking app?
To apply on your bank’s mobile app you will need:
- A steady source of income or employment to prove you can pay back the loan.
- A valid government issued ID like national ID, passport or driver’s license.
- Bank statements or payslips for the last few months as proof of income.
- A property or land you want to buy (this may be required to value the loan).
- Evidence of good credit score or history with the bank (if applicable).
The app will show you how to upload your documents.
4. Are there any eligibility requirements to get a mortgage in Nigeria?
Yes, to be eligible for a mortgage you must:
- Be a Nigerian or a legal resident.
- Be at least 21 years old (some banks may have different age limits).
- Have a steady income that meets the bank’s minimum salary requirements.
- Have good credit history with the bank or in the Nigerian financial system (depending on the bank’s requirements).
Check the specific eligibility requirements on your bank’s app before you apply, as they may vary by institution.
5. How much can I borrow?
Most banking apps will calculate how much you can borrow based on your income and other factors. This is usually done through an affordability calculator in the app. The amount you can borrow will be based on your income, expenses, property value and credit score. Enter your details and the app will give you an estimated mortgage amount that suits you.
6. What are the interest rates for mortgages in Nigeria?
Interest rates for mortgages in Nigeria vary from bank to bank and type of mortgage. They are usually fixed for a certain period (usually the first few years) before it becomes variable. Banks may also have different interest rates based on the loan amount, tenure and your creditworthiness. Always check the interest rate when you apply for a mortgage on the banking app. The app may also give you options to compare rates or recommend plans for you.
7. Can I track my mortgage application on the app?
Yes, once you’ve applied for a mortgage through the bank’s app, you can track your application anytime. The app will give you updates on whether your application is under review, approved or additional information/documentation is required. This real-time tracking feature allows you to monitor your mortgage application without visiting the bank.
8. What happens next?
Once approved, you will receive an agreement outlining the loan terms including repayment schedules, interest rates and monthly payments. Some apps will also allow you to e-sign the agreement. After signing, the loan amount will be disbursed to you and you will start repaying the loan as agreed. You will also be able to manage your repayments on the bank’s app where you can make payments, check balances and view your outstanding loan details.
