Are You Looking for a Home Construction Loan in Ghana? 6 Simple Steps to Follow
Owning a property is probably the greatest investment that you can make in life. Besides the fact that the real estate increase in value with time, it is also a very safe way to invest your money as you can always and easily track the value of your property in the market. Now, if you are looking to build a property, update or renovate it, or you just want to add some eco-friendly features to your home, there are high odds that you will not have all the cash that you need for the project upfront. And since home construction can be expensive, a construction loan is a great way to get the money you need for the project. So, what are the steps to getting a home construction loan in Ghana? Find out below!
Step 1: Figure out how much money you need
The amount of money that you need for the project will be determined by whether you are constructing a new home, remodeling the existing one or you just want to add some green features to your property. Regardless of the type of the project you want to undertake, you will need to get a cost estimate from your contractor.
As a prospective borrower in Ghana, knowing the amount of money you will need for the project will help you in deciding the type of loan that is best for your situation.
Step 2: Choosing the proper lender for your construction loan
You now know the amount of money you need for your project. The next step is to choose the bank or company that will handle your loan. Currently, lending rates in Ghana are extremely high, but there are banking institutions that offer better rates, such as HFC Bank Ghana, eco-bank transnational and eco-bank Ghana.
Step 3: Collect the required documents
Some of the important documents that you may require when applying for home construction loan include:
- Two proof-of-address forms
- Two forms of personal identification
- Credit reports
- Proof of income
- Recent banking statements among others
Step 4: Signing the agreement
Before signing a loan agreement, make sure that you are familiar with the terms and conditions as provided in the contract. You should be aware of each and every item included in the agreement, such as the payment dates, loan amount, and transaction fees among others.
Step 5: Sending in your application
You can submit your application through an online platform, or you elect to take them in person to your lender.
Step 6: Waiting for disbursement of money
The approval for your loan could come in faster or take few days, depending on your lender.
Following the above steps will greatly ease the process of getting a home construction loan in Ghana.