- Specify your resources
Determine how much money you have to spend on a home. You need to consider both what lump sum you have now for the down-payment, and also how much money you'll have on an ongoing basis for the regular installments in the future. To determine what size of mortgage you may qualify for, try out our Mortgage Calculator.
- Select the appropriate property
Select the property that suits you through any person or private or public sector company or cooperatives. This is generally a long-term investment, so be sure to think ahead so that you buy a home that can meet your future needs as well as what you need currently. Make sure that you only consider properties that are registered or could be registered.
- Prepare the required documents
You will need the following documents about yourself, to prove your identity and your ability to repay the mortgage:
· Personal ID card, or National ID or passport.
· Income verification document
If you are an employee, you can get salary details from your employer.
If you are professional, you can get a certificate from the tax authorities indicating the income used as
a base for tax assessment during the last three years.
Any other documented income to be accepted by the financing agency.
In addition, you will also need documents related to the property.
1. A copy of the proof of ownership provided that the property is registered or could be registered.
2. A certificate of all transactions related to the property during the last ten years. This certificate can be retrieved from the Real Estate Publicity Department REPD. Real estate form 19 is a standard form customers complete by hand to retrieve transactions on a given property.
3. A copy of the building permit of the property to be financed.
4. Property tax certificate.
You can get these documents from the property owner, or have the property owner submit them directly to the financier or bank in your presence, or have the Mortgage Finance Broker submit the finance file that includes all documents.
- Select a Mortgage Finance Broker
A Mortgage Finance Broker helps you choose the property that suits your financial resources and calculate the installments you can afford to pay and the payment duration.
You can receive a list of Mortgage Finance Brokers approved by the MFA from either the MFA (link to contact information) or the financier. You may want a broker from the area you live in, or perhaps you'd prefer having a broker from the area where the property you want to buy is located.
The services provided by the Mortgage Finance Broker are free of charge, since the finance agency pays for brokerage fees.
- Apply for mortgage at financing agencies
You need to complete the mortgage application form and submit it along with the required documents mentioned earlier, or seek the assistance of the Mortgage Finance Broker to fill the finance form and submit the documents on your behalf. Remember that the services of the broker are free of charge.
Upon receiving your application and supporting documentation, the financing agency verifies them and examines the application for financing. You or your Mortgage Finance Broker will be notified as to whether your application has been accepted or rejected.
- Get the property appraised
After the finance agency approves funding for the property, you need to hire an appraiser listed at the MFA (link to contact information), to determine the fair market value of the property. The investor will pay the appraisal costs; the related expenses will be added to the financing amount you will repay in the future.
- Sign the contract
After the appraisal is done, the owner of the property will need to sign the property ownership contract. The contract will be a trilateral finance agreement using the official form developed by MFA, then signed by you (the investor), the property owner and the financing agency. You must keep this contract with your files for future reference.
- Buy insurance
This is an optional but highly recommended step. House insurance protects you and your family in case of inability to pay due to death or disability. Insurance payments may be able to be included in your mortgage installments through the finance agency.
- Get your property registered
In order to maintain and preserve your rights of ownership of the property you have purchased, and to avoid any related future disputes, you need to register your new property. |