Document background
The First Payment Letter Mortgage is a crucial document in Nigerian real estate financing that bridges the gap between mortgage approval and commencement of payments. It is typically issued after a successful mortgage application and property valuation, but before the release of funds. This document serves multiple purposes: it confirms the mortgage approval, specifies the first payment amount and due date, outlines the complete payment schedule, and details any conditions that must be met before the mortgage becomes active. Under Nigerian banking regulations, particularly those governed by the Federal Mortgage Bank of Nigeria, this letter forms a key part of the mortgage documentation package and must comply with specific legal requirements regarding content and format. The document is essential for both the lender's records and the borrower's understanding of their obligations.
