How To Get A Mortgage Loan In Kenya

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So You Want to Ditch Renting and Become a Homeowner in Kenya? Hold Onto Your Tuskers, Here's the Mortgage Mojo!

Ever dreamt of that perfect cup of Kenyan tea on your own balcony, overlooking a view you actually own (and don't have to ask permission to paint)? Yeah, homeownership is pretty sweet. But between you and that dream house stands a rather large hurdle: the mortgage. Fear not, potential homeowner, for this guide will be your machete through the jungle of getting a mortgage in Kenya.

How To Get A Mortgage Loan In Kenya
How To Get A Mortgage Loan In Kenya

Step 1: You Gotta Have the "M" Word: Money

Let's be honest, mortgages don't grow on mango trees. You'll need a down payment, which is basically your skin-in-the-game contribution. The size of this down payment can vary, but generally expect to cough up around 20% of the property's value. Top Tip: Start saving early and avoid that emergency purchase of that life-sized replica Masai Mara giraffe statue (because, let's be real, where would you even put it?)

Step 2: Befriend Your Payslips and Bank Statements

Now it's time to prove you're a responsible chap (or chapess). Gather your payslips and bank statements like prized possessions (because let's face it, a steady income is a prized possession). Most lenders will ask for the last 3-6 months of these documents. They basically want to see your financial history singing like a happy lion cub – consistent and healthy.

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Step 3: The All-Important Documents: A Paper Safari

Getting a mortgage involves more paperwork than a Kenyan bureaucracy picnic. Here's a survival checklist for your document safari:

  • ID and Passport Photos: Because, you know, gotta prove you're a real person and not just a rogue honey badger with dreams of homeownership.
  • Kenya Revenue Authority (KRA) PIN Certificate: Basically, your taxman hall pass.
  • Proof of Employment: A letter from your employer confirming you're not some figment of their imagination (and your salary, of course).
  • Property Title Deed: Proof that the house you're eyeing isn't built on imaginary land.

Don't Forget: This list might vary depending on your lender, so be sure to check their specific requirements.

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Step 4: Picking Your Perfect Mortgage Provider

Finding the right mortgage provider is like picking out the perfect cup of chai – it all depends on your taste (and interest rates!). Shop around, compare different banks and institutions, and don't be afraid to haggle (within reason, of course).

Here are some things to consider:

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  • Interest Rates: Fixed or floating? That is the question. Fixed rates offer stability, while floating rates can be a gamble.
  • Loan Term: How long do you want to be chained to this mortgage? Longer terms mean lower monthly payments, but you'll also end up paying more interest in the long run.
  • Fees: There can be a variety of fees associated with mortgages, so be sure to factor those in.

Step 5: The Big Wait (But Hopefully Not Too Big)

Once you've submitted your application, it's time to twiddle your thumbs and wait for the bank's verdict. This can take anywhere from a few weeks to a few months, so be patient, young grasshopper.

Pro Tip: In the meantime, channel your nervous energy into daydreaming about how you'll decorate your new home.

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Finally, Homeownership Bliss (Maybe with a Few Hiccups)

Congratulations! You've conquered the mortgage maze and are now a homeowner. Time to celebrate with a proper Kenyan feast (because what's better than owning your own house? Owning your own house with a full stomach!).

Just remember, homeownership comes with its own set of responsibilities. Be prepared for the occasional plumbing mishap or that one uncle who always overstays his welcome (we all have one). But hey, at least it's your plumbing to fix and your guest room to politely evict your overstaying relative from.

So there you have it, folks! Your one-stop guide to getting a mortgage in Kenya. Now go forth, and may your journey to homeownership be filled with laughter, maybe a few tears (of paperwork frustration), and ultimately, the joy of owning your own slice of Kenyan paradise.

2023-11-02T04:17:17.392+05:30
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freddiemac.com https://www.freddiemac.com
wsj.com https://www.wsj.com
fanniemae.com https://www.fanniemae.com
studentaid.gov (for FHA comparisons) https://studentaid.gov (for FHA comparisons)
nar.realtor https://www.nar.realtor

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