Your Financing Strategy Ask questions from your bankers which of one these will benefits you most and which one could be costly to you. You can also get free checks when you open your account, you do not need to pay for checks. All checks are processed the same way that is up to you and how you manage your money. -Savings Accounts: Custom Savings, Money Market Account Checking Accounts: Economy Checking, Express Checking, -Regular Checking, Senior Checking, Student checking -Your Debit/Visa Card to use for shopping could be free when you open your account, make sure you ask for it, at times they will ask you if you want one or not. Where you use your Debit/Visa Card to withdraw money matters to your bank, it could cost you for using it at the wrong places, ask your banker for information where you could use your card without paying extra charges... Some banks charges between $1.00 up to $3.00 if you use their card to withdraw money from another bank that they do not do business with. It is your money... Each one of the above has advantages and dis-advantages, be careful when you are opening your accounts; you could loose money to the bank right away. You also need to know if your monthly statements are going to be free or not, when you make inquiries, the bank could be charging you for too many inquiries. Some things are free from the big banks and something's are cheaper from the community banks. Basic Requirements for lending you money: · Savings and Checking Account · (2) Good Credit or No Credit it depends where you are getting the money. · (3) Collateral such as your House, Car, Boat, Gold/diamond or any valuable assets they can hold on · Driver's License, · Social Security numbers · Good Employment, at least for six months. Lenders Information: Big Bank requirements- Can be very tough to meet because they have to abide by the 'Federal Reserve Bank or Federal Deposit Insurance Corporation (FDIC)' regulations. They got their money from the Federal Reserve Bank at a lower rate, however, they could turn around and loan it to the smaller banks at a higher rate, and the smaller banks loan it at higher quote rate to the public. Community Bank requirements/Credit Union: Well, the community bank is no different either, they turn to the big banks to borrow money at a lower rate so that they can loan it to their customers/clients at a higher rate to make some profit to stay in business. Private Capital market requirement: This is where the business gets tougher. The Capital Market enterprise is a big boy on the Wall Street, where they can finance just about anything they like, because they are not being regulated by the government, it is an individual rich businessmen that have money to loan out at a higher rate. They are not required to follow financing rule rigidly as the bank does, but they still have follow the consumer law that protect all of us from being taken advantage of. Family friends requirement: This one is your best source of financing, if you could find a rich friend or family friends that can loan you money without any attachment or collateral. They may ask you to pay them some small interest, or none it all depends what you are using the money for, at they would like to get a piece of the apple when they know you are going to make a lot profit. Collateralization: There some companies out there that would loan you money to meet your emergency needs, but becareful, they may ask you to give them your house, car, motor cycle or any of your valuables for collateral just in case you were unable to pay them back, but, they are very quick to take your valuables and you may not have any re-course to take them to court for doing so. I would stay away from such financing unless you have to... There is going to be a time when we are going to need finance or re-finance our mortgages, car, motorcycle, big boat, air-planes etc., that we cannot come up with up-front lump sum money to pay for it This force us to turn to our bank, family friends, private capital market, small loan companies to loan us that money. This is where we are being taken advantage of by offering us some sort of un-affordable rates. At first you would think this a great opportunity that it will not be problem, you could afford that payment being offered to you by your lender, you better think again before you sign that dotted line. They could be collecting interest from you money for long time without any of it going to your principle. Pay attention to dotted Line and Small print in the loan documents: The loan documents can be very tricky to read when you are not an attorney, the small fine prints areas are very important areas to pay attention to, because this is where they hid rates, timeline, and warrante, but if you don't pay attention to the rates they quote or offer to you in the loan document that you are going to sign you could be losing a lot of money. You probably better off to take to your attorney before you sign the dotted line. In the fine print of the loan documents is where they hid most important information that your lender did not want you to know about, especially mortgage and credit card documents. It sounds strange, but it is true, If you don't believe what I said here in this document, go to your loan documents and read the small prints in there you may find out something that you would not like to see or hear about, or if don't believe what I said here, ask yourself a question of why didn't they just print the whole loan documents in a readable format with nice fonts that an average third grader can read and understand it without having to scratch their head or look up words in the webster dictionary for interpretation of words, after all you are the consumer paying them for this services and they will be collecting interest from your financing for such a long time. 95% of mortgage homeowner never gets to the point of paying principle or their mortgage finance off before being taken away from them, but the bank or private investor already started to benefit. Yes, I understand they took the risk to finance us. I think what is fair is fair, they should make the loan documents more readable for us, and there should be no small prints that is had to read on any loan documents. They should be in a readable format that average Joe can understand; my question all the years was why are they making it so complicated to read if they do not have anything to hide? I also think the loan documents should not have so many pages when we are talking about saving the threes... Not too many consumers read all these pages, it has no value to have so many pages when no one really reads it, of course the attorney will not be making money if they these document could be reduced to minimum. My solution to this big fat loan documents should be to reduce them to minimum, all it should it be contain is, who own the house, the rate, how long is going to be paid, warranty, borrower's and co-borrower, and all other very valuable information it should not be more than 10 pages long.
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Penting Tahu 5 Cara Ni Kalau Taknak Berus Gigi Jadi Sarang Kuman








6 Ways of Financing your Building Projects To get a loan to build a house, you must understand that a collateral is always needed. But not everybody is comfortable with this arrangement. What becomes of you if you are unable to pay back? Let's talk about all the means then you choose the one most suitable for you. 1. PERSONAL SAVINGS This is by far the most popular method people are using to get their house built, there is no fear of creditors knocking on your door and it gives a lot of rest of mind. Honestly, no matter how small your salary is, you can build a house if you set your mind towards it. There is always a case of you saving from whatever your income is. Study has showed that 30% of the moderate level of what we get monthly goes to buying very unimportant goods and junks. So you can cut unnecessary costly foods in costly restaurants.Sit down, make an inventory of wasteful spendings and start saving 20% only of your income, no matter how small in 2 years time you will start a home of your own,whatever you are able to save will be enough to start your house. Professionals benefits most from this type, with up fronts, profit sharing and commissions amongst others. Personal savings amongst others is the first option if you want to acquire a land and building a house. ADVANTAGES i. There is no debts to service or pay no matter the turns of things. ii Rest of mind, since there is no creditor coming to knock on your door. iii.It is healthy at the long run, when your mind is free of fear you are most likely to live a heal their life and avoid hypertension. iv. It gives you room to channel your earnings towards something valuable and gives you more responsibility. DISADVANTAGES i. It may take a long time to achieve your dream ii It bites on your income and may moderate your style of living iii.Staying for too long, might make somebody to loose interest altogether and abandon the project. iv. There is alway fear of families of (Omo Onile) Landowners rising up to lay dubious claim on your land especially when the seller is dead, because of long time of building. v. There is always probability that the savings might be converted for other uses. vi. Inflation on cost of materials and labor may also be seriously catching in. 2. WORKPLACE MORTGAGE AND LOANS This is most attractive to workers that are planning to invest in Real Estate. Though it is mostly used for personal buildings, but giving honest advice from me, it is better for you a young man or woman to build it, then rent out and let the building pays for the loan back while you sit down and collect rents . Then now use the dividends to finance another project. The National Housing Fund remains the most attractive leeway for those who desire to build with loan especially the civil servant. It is designed by the government to aid the federal Mortgage Bank of Nigeria, with less bureaucracy unlike before and it offers presently a maximum of N5m at an interest rate of 6% and a whopping 25 years of repayment tenor. This fund can be joined through any of the mortgage banks in Nigeria. ADVANTAGES i. Fast completion of building ii. The paying back period is long and is remove automatically from your monthly income without you feeling the pinch because it is usually very small. iii.The interest rate is very low. iv. If you understand real estate, this opportunity can turn you into a millionaire. DISADVANTAGES i. You are indebted for a very long time. ii. Interest rates no matter how small will still eat into your pocket. iii.Sudden severance of your job, may leave you in the cold against your creditors, what if you are unable to get another job. 3. THRIFTS AND COOPERATIVES' HOUSING SCHEMES This method is becoming more popular among the young workforce and a lot of cooperative housing schemes are springing out daily. It employs the same old mold of operation, only that in this case you are expected to own a home. All members pool resources together to build houses for each member in areas of choice. This is an alternative to mortgage for the low income earners, who makes monthly minimal contribution overtime. ADVANTAGES i. Just as in mortgage loans, fast completion because of readily available funds. ii. At times members purchase large expanse of land and divide between members which is more comparatively cheap, they get professionals to do the projects in large volume, and the professionals in turn charge less because of large numbers of jobs. Housing cost can be reduced by 25% with this method. iii.Encourages other mutual benefits and promote friendliness. DISADVANTAGES i. It definitely goes without saying that the cooperative society of choice must be well researched and thoroughly investigated to ascertain the commitment and integrity of its members. Some members can decide to default and this may lead to the collapse of the cooperative club. 4. LAND SPECULATION & CAPITAL MARKETS Have you packed into a developing area before, which is still full of vegetation? Within 3 months what you will notice is a surge in inflow of people of that location either they are trying to secure their land or are encouraged by the moving into the location by you, and are sure of meeting neighbors to talk to, transact business or probably for security, whichever, there is always a trend of people moving into a location because somebody like you have just moved in. So what happens? as you have more traffic, the value of properties in that area will naturally increase. So when you are buying a land, why not make it two or more, as you build one, the other plots will appreciate in value sell them and use it to complete your resident house. ADVANTAGES i. You may not feel the pinch of paying so much because of your investment that will augment for you. ii. This may be a starting point for you in real estate investment, this will give you a first hand knowledge on how it works iii.Benefits like naming of the street after your name and others. iv. You are not bothered by repayment of loans, since you are building from your investment. DISADVANTAGES i. Because this is a fresh area with less development, you may not have access to some infrastructural facilities already existing in the main towns. ii. It may take some waiting for other lands to appreciate before you can complete your project. 5. SOURCING OF LOANS FROM YOUR BANK With consolidation of Nigerian Banks, there is a lot of money now available for business transactions, so banks these days are ready to loan you money to be able to complete your building, though this process is the most difficult to choose. ADVANTAGES i. Completion of job in time because of availability of funds ii.If you are sure of the location then you may sell the building and make quick profit because of fast completion DISADVANTAGES i. Request for collateral ii. Bureaucratic bottlenecks 6. DIVIDENDS FROM HIGH YIELD INVESTMENT PROGRAMS (HYIP) AND SHARES Some smart young couples are making use of this program to develop their homes stressfully. Though high yield, high risk, this is by far the best and the easiest way I can recommend to anybody when building their house. Before present problems with most of the HYIPs, There is an high yield investment program being promoted by an Oil and Gas firm in Nigeria called Nospectus, you invest N450,000 in their company and they in turn by the end of every month will be paying you N40,000 in 12 months you would have made 100% turnover, and the good thing about this company is that you can withdraw your capital of N450,000 anytime you want to.( Also you have Clubfreedom among others.) A couple grew theirs to N200,000 per month i.e. 5 slots and they build their house of choice so stressfully, imagine having N200,000 per month as an additional salary without any further effort. "Note: though I am not recommending them, I know of quite a few people in this scheme. There are a lot of HYIP's also going on internet but you have to consult those that are already into it before you get defrauded. Less risky ones is to buy shares, bonds etc and use the profits to build your house. "My general advice is to start small" ADVANTAGES i. Very easy to generate steady flow of cash for your building. ii. The more investment , the more money to help in financing your building project. DISADVANTAGES i. High risk ii. Shares may plummet iii.Companies can pack up tomorrow iv. Wrong decision by the investment company may lead to closure of business thereby affecting you. Omion Emmanuel is an architect that has great passion for online marketing, He uses the medium to teach young Nigerians on how to effectively build,manage and supervise their building projects. He is more at home with construction industry of his native country Nigeria. He specializes in Residentials and Bank building design and Construction. He is best called Nigerian online building management pro.




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