Having engaged the various mortgage financiers, their process are the same but the terms of the facility may differ hence one should find out the bank with favourable terms. Banks with seamless and simplified process are the most preferred and we at Kagen Properties always advise our customers so the they do not find themselves in a fix.
Below are the steps that a mortgage application goes through. The whole process should normally takes an average of two to three months.
The applicant submits all the required documents to mortgage banker and completes a mortgage application form. The requirements for employed and Company applicants include, but not limited to, the following;
- 3 copies of your current pay slip/ proof of income
- A copy of your ID and two (2) passport photos
- Copy of your Kenya Revenue Authority PIN certificate
- Certified copies of 6 or 12 months (depending on the financier) bank statements
- Letter from employer Confirming – Position* Length of service* Retirement age* Income*Employment terms (permanent or contract)
- Copy of Title for the property offered as security
- Offer letter/Sale agreement if available
Company/self employed applicants
- 2 years audited financial statements (limited Companies) and management accounts where applicable
- Certified copies of 12 months bank statements
- Memo & Articles (limited Companies)
- Registration Certificate/ Incorporation Certificate
- Copies of director’s identity document /passport
- Copy of Director’s Kenya Revenue Authority PIN certificate
- Business PIN (limited Companies)
- Copy of Title deed if available
- Sale agreement if available
After analyzing the documents provided and due diligence on the applicant done, the application is then submitted to the respective credit officer and the loan is processed and formal approval/offer letter duly executed by bank’s signatory is issued to the applicant.
The applicant has 30 days to accept and return the offer letter for onward re-submission to the financier after meeting all the conditions stipulated in the offer letter. Also, at this stage, the bank issues instructions to the Bank valuer to carry out a valuation and give a valuation report and the applicant will be required to pay valuation fees. Kagen Properties & Investments assist their clients to select a valuer from the bank’s panel and negotiate on the fees to be charged.
After applicant’s acceptance, the Bank issues instructions to the appointed Bank lawyers to begin conveyance or perfection of security documentation. At this point the applicant will pay the stamp duty and legal fees. The title deed will then be transferred to the buyer’s name and charged to the bank. The bank will hold the original title deed in it’s safe custody until payment of the mortgage is paid in full. The applicant should remember to ask the copy of the title deed from the bank lawyer since once the title deed is taken to the bank’s safe custody it will not be retrieved back until when the loan is cleared which may be several years later.
The funds will be released to the beneficiary within 14 days of receiving the security documents duly perfected. At this point the applicant will be required to: –
- Have met all drawdown conditions on the offer letter
- Clear the lawyers legal fees
- Pay the initial insurance premiums i.e. mortgage protection insurance, house owners comprehensive insurance and retrenchment cover