A desire to own a home at affordable prices defines every Kenyan’s dream. Homeownership comes with pride, comfort, freedom, and security. However, owning a home seems farfetched to many because houses are costly.

Mortgage firms provide various home loan products. Home loans or mortgages are categorized according to the repayment periods, interest rates, the borrower’s age, and specific loan products.

How to Qualify for a Mortgage in Kenya

One must first consider some factors necessary to acquire a home loan and start by finding the appropriate home. The cost is attributable to the size of the house, the number of rooms, the neighborhood, and proximity to essential services and amenities.

Secondly, the applicant must pool the requisite deposit as demanded by the lender. The price of the house, location and your credit rating based on past performance determine the deposit payable.

If you have a history of default, you are considered risky and the bank applies high rates and deposits to cushion.

A man holding a small house

Thirdly, your ability to pay matters. The lender assesses your ability by considering your current income and whether it can support the current liabilities inclusive of the anticipated instalments and the requisite down payment.

The fourth consideration involves choosing the right lender. This approach involves comparing various lenders and products offered by each. You can make comparisons by making inquiries.

It is advisable to go through the various mortgage products and interests offered by any given lender.

Fifthly, you should maintain a good credit rating. The credit history of past and existing loans defines your credit scores and you should always maintain a clean record by paying liabilities on time.

You should provide honest information regarding the borrowing history. A higher rating is favorable in getting approval and helps you negotiate lower interest rates.

Tips on Choosing a Good Mortgage Lender in Kenya

Shopping for mortgage lenders is often a complex and tiresome process, what with mortgage brokers. Here are essential guidelines.

Two people searching online for morgage lenders

Get to know the mortgage company and their track record. Appraise their loan officers bearing in mind that experienced loan officers are confident and understand their roles. The officer should provide all the necessary information at their fingertips and avoid back-and-forth referrals.

They should let you let you choose and guide you on convenient products from their various offerings.

The cost of credit is a core consideration in any loan. It includes interest, commitment fees, insurance, and other external costs involved. The lender should furnish the total cost of the loan at the initial stages to enable you to make informed choices.

Consider the Rates of several lenders before deciding on the right fit. You should take care of terms and conditions usually in small print such as variation of interest rates which may lead to increased installments in the future.

Shop around for fairly priced lenders. If you want to strike a good mortgage interest rate deal, look for several options before moving forward with a particular lender. Ensure your preferred lender is flexible and can accommodate your needs.

Go with a lender with good service reviews if you are split between lenders who offer the same interests.