(A Short Story)
It is 5.00 AM in Lagos. The rooster’s crows can be heard by all the neighbouring homes. The rooster carries on his duty dedicatedly which awakens Jide Babatunde. Jide sluggishly stands up from his bed. Jide reaches out for his phone. Where is my phone he thought as he scanned through the room searching for his phone, he finally found it on top of a pile of books. He strolled over to pick it up as his eye noticed the date on the calendar. “Ah, it is the 30th of the month already? Chai Oga Landlord will not let me rest with this rent matter.’’, he said.
It is not like he couldn’t pay up; he was just in the middle of a crossroad. In plain old English, he was tired of paying rent but looking for a house isn’t easy either, it was like everyone was trying to steal a share out of his hard-earned money.
Jide sat back on the bed and began to ponder on his current situation, why am I helping this man amass wealth when I won’t even end up owning the property? I must find a way to leave this situation for good. So Jide started looking out for opportunities that could get him out of his current situation, and here is what he found;
Start saving up for a deposit
A substantial deposit will increase your chances of getting your home loan approved. Of course, the most challenging part of the process for younger homebuyers is pulling together the funds for a deposit. It will necessitate some serious planning on your behalf. In many respects, conserving money is a simple notion that is difficult to put into practice. Begin by making a list of your monthly expenses and identifying areas where you may save money.
Housing Loans and Financial Support
Research government subsidies (and other support programs aimed at first-time homebuyers)
Government offers a housing subsidy program, National Housing Fund (NHF) is a Federal Government scheme, which entitles all Nigerians above the age of 21 years in paid employment to a low-interest, government-funded loan. Members of the scheme contribute 2.5% of their monthly salary to the fund through the Federal Mortgage Bank of Nigeria. The maximum amount obtainable under the NHF used to be N5 million but has since been increased to N15 million. The borrowed capital is repayable over a maximum of 30 years at the rate of 6% interest.
Home loan companies may also provide programs for first-time homebuyers. It’s critical to do your homework and check what kinds of offers are available. For example, you might apply for a 100% house loan, with some lenders offering a cost-inclusive home loan, which eliminates the need to save for either a deposit or transfer and bond registration expenses. Of course, having a clean credit history is essential, and banks will examine your application favorably.
Loan companies will examine your financial histories, such as your debt-to-income ratio and assets, to determine whether or not to give you money and what size monthly payment you can realistically afford. This will assist you in locating homes within your budget range. That’s a good thing, because a purchase price that’s out of your price range may lead you to stress about your mortgage payment and put you at risk of defaulting on your loan.
Keep your rent affordable.
This will help you get closer to home ownership. Remember, your goal is to start small, so your initial home purchase should be something you would ordinarily rent.
Luxury should not be a goal while renting; instead, focus on finding somewhere comfortable and putting the money you would have spent on a higher-priced rent toward a property deposit.
It is crucial to plan your first step onto the property ladder by identifying the properties you can afford.
Find a real estate agent
Most first-time home buyers will want to work with a quality real estate agent, specifically a buyer’s agent, who will assist them in finding the ideal residences, negotiating a great real estate deal, and explaining all of the complexities of home purchasing along the way.
The best part is that the seller pays the sales commission, and the agent’s services are free to home buyers.
It is House Hunting Season!
This is the exciting part! As a home buyer, you can use lots of real estate listings on the internet, then ask your agent to set up appointments to see your favorites in person. Because the number of homes available can be overwhelming, it’s best to separate your must-haves from those features you’d like but don’t really need. Make a list of your wants and needs to get started, and narrow down your options.
Make an offer
Have you found a home that ticks all your boxes? Then you make an offer to the owner. Ensure the home of your choice has all your must-haves.
Book a home inspection
A home inspection is when you engage a home inspector to go over the house from top to bottom to see if there are any issues that would make you reconsider moving forward. See defects to look out for during a property inspection.
Head to close
The day you close is the day you get the keys to your new home. The property’s ownership is transferred to you, the buyer, on closing day. This day is spent transferring monies from escrow, paying mortgage and title fees, and amending the house deed to your name.
Move in!
Congratulations! You’ve officially progressed from home buyer to homeowner! After all, the long-term process of purchasing your first house wasn’t so scary after all, right? Now it’s time to generate money without stress, just like Jide’s Landlord.
Start your real estate journey
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