5. Obtaining Finance
You’re on to financing your project. This phase will provide you with useful information on how to apply for a mortgage.
- Identification card/Passport along with passport size photo.
- New Drivers Licence and/or TIN Certificate
- Proof of address (utility bill, rental receipt, etc.)
- Employment letter and (3) consecutive months’ payslips
- Proof of income if self-employed
- Copy of Transport/Title/Lease Document or Letter of Intent/Agreement of Sale and Purchase if the property is being purchased
- Copy of recent Rates and Taxes/Lease rental receipt
- Estimates of construction cost accompanied by an approved plan
- Equity contribution
- Certificate of Valuation for the property being purchased from a Government Valuation Officer (Officers are located at the Government Valuation Office, Camp Street, G/Town)
- GOVERNMENT VALUATION
- As it relates to commercial banks, all are mandated to use a Government Valuation officer. These officers can be obtained from the Government Valuation Office of the Ministry of Finance. Financial Institutions, on the other hand, are not mandated to use Government Valuation Officers. Rather, they have their own arrangements. For example in Guyana, one of the main financial institutions used to obtain financial assistance when building a home is the New Building Society (NBS).
For persons who have acquired house lots, if finance is being obtained through a commercial Bank, a valuation of the land and proposed structure is required.
- It is the job of the Valuation officer to prepare a report outlining the current market value of the land and property and together, inform the commercial bank what it will be exposed to if it decides to lend or how much it can lend.
- The valuation cost of a plot of land may vary depending on the size of the land and the rate charged by the officer conducting the valuation.
Determinants/Criteria for Valuation of lands
Size of the land
Larger the size, the higher the value and vice versa.
Area of the Land/Location
A land in one area may be worth more than a land in another area.
Whether it is a corner lot, middle lot or a lot with extra space. Also, whether it is located near to the main road or on the main road is significant as well.
A valuation of land should not take more than 10 days.
Once you have met these requirements and will be financing your building project with a loan, here is a list of banks and institutions providing these financing services
- After initial paperwork with the bank, you will be advised to have the mortgage deed done by a lawyer (Submitted to the bank and Land Registry / Deeds Registry)
- When the mortgage is repaid you should ensure that a cancellation of the mortgage is done at the Land Registry / Deeds registry so that the documentation shows that the property is yours.