Buying your first home in Nigeria is an exciting milestone, but it can also feel overwhelming. This comprehensive guide will walk you through every step of the process, from preparation to closing, ensuring you make informed decisions and avoid common pitfalls.
Phase 1: Preparation & Planning
Assess Your Financial Readiness
Income Requirements:
- • Stable employment for 2+ years
- • Debt-to-income ratio below 40%
- • Monthly income 3x mortgage payment
- • Consistent salary history
Savings Needed:
- • Down payment (10-30% of property value)
- • Legal fees (2-5% of property value)
- • Survey and valuation costs
- • 3-6 months emergency fund
Credit Score Optimization
A good credit score significantly improves your mortgage terms and approval chances.
Phase 2: Understanding Financing Options
Primary Mortgage Banks (PMBs)
Best for: Traditional buyers seeking established mortgage products
Commercial Banks
Best for: Existing customers with strong banking relationships
National Housing Fund (NHF)
Interest Rate
Maximum Tenure
Maximum Loan
Requirement: Must contribute 2.5% of monthly salary for 6+ months
Phase 3: Property Search & Selection
Define Your Requirements
Must-Haves:
- • Number of bedrooms/bathrooms
- • Maximum commute time to work
- • School district quality
- • Security features
- • Parking requirements
Nice-to-Haves:
- • Swimming pool or gym
- • Garden or balcony
- • Modern kitchen appliances
- • Generator backup
- • Shopping centers nearby
Location Evaluation Checklist
Infrastructure
- □ Road quality & accessibility
- □ Power supply reliability
- □ Water supply consistency
- □ Internet connectivity
Amenities
- □ Healthcare facilities
- □ Educational institutions
- □ Shopping centers
- □ Recreation facilities
Safety & Security
- □ Crime rates in area
- □ Security personnel
- □ Street lighting
- □ Gated community
Phase 4: Legal Due Diligence
⚠️ Critical Document Verification
Never proceed without verifying these essential documents. Many buyers lose money due to fake or disputed titles.
Essential Documents to Verify
Certificate of Occupancy (C of O)
Government-issued title proving ownership rights
Survey Plan
Registered survey showing property boundaries
Deed of Assignment
Document transferring ownership from seller to buyer
Tax Clearance Certificate
Proof of paid property taxes
Building Approval Plan
Government approval for construction
Professional Verification Services
Title Search:
₦50,000 - ₦100,000
Legal Verification:
₦100,000 - ₦200,000
Property Survey:
₦150,000 - ₦300,000
Property Valuation:
₦100,000 - ₦250,000
Phase 5: Closing the Deal
Final Steps Timeline
Days 1-7: Final Documentation
- • Complete mortgage application
- • Submit all required documents
- • Schedule property inspection
- • Finalize insurance arrangements
Days 8-14: Bank Processing
- • Bank conducts property valuation
- • Credit assessment completion
- • Mortgage offer letter issued
- • Legal documentation review
Days 15-21: Final Closing
- • Sign deed of assignment
- • Transfer property ownership
- • Complete payment transactions
- • Receive keys and possession
Total Closing Costs Breakdown
Mandatory Costs:
- • Legal fees: 2-5% of property value
- • Stamp duty: 3-6% of property value
- • Survey fees: ₹150,000 - ₦300,000
- • Registration fees: ₦50,000 - ₦200,000
Additional Costs:
- • Property insurance: 0.5-1% annually
- • Moving expenses: ₦100,000 - ₦500,000
- • Utility connections: ₦200,000 - ₦500,000
- • Immediate repairs: 2-5% of property value
Total Expected Closing Costs: 8-15% of property purchase price
Phase 6: Post-Purchase Essentials
First Month Priorities
Long-term Wealth Building
- • Property Appreciation: Track market value annually
- • Tax Benefits: Maintain records for deductions
- • Equity Building: Consider extra principal payments
- • Future Investment: Plan for additional properties
