Home Construction Loan Lagos Nigeria - What Is The Best Way To Approach A Bank For Construction Loan?
I am looking to develop a block of flat on one of my plots of Land at IKOTA Villa on Lekki Epe Axis.
I am looking for a bank that will finance the project for me. Can you suggest any bank in Nigeria and the steps to take in this approach.
Many thanksReply By Samson, Lagos Nigeria Real Estate Guide
David, I see you live outside the country. To take a loan you will need to have an account with a bank in Nigeria.
The next thing to do is to discuss with your account officer.
Your account officer will outline all that you need to do to secure the loan.
He will first want to understand monthly earnings level so he can calculate the loan amount you qualify for. Ideally, the sum of the loan repayment amount
and the interest should not exceed one-third of your earnings.
If you meet all the requirements, you will be issued the loan forms.
Please note that commercial banks are more inclined to give a home construction company a construction loan than an individual. Banks prefer to give
individuals home purchase loans so that if you default, they can recover their money from the sale of the property.
Therefore it's likely that you may not qualify for a construction loan.
However, depending on your relationship with your bank, you just may qualify for a construction loan.
As I said earlier, discuss with your account officer.
He knows the worth of your account. And therefore can proffer an ideal solution.