As the "jewel of the Middle East", Dubai has attracted the attention of many investors from around the world, and there are many home buyers who wish to invest in the city. The following article provides you with some guidelines regarding home loans.
1. Selecting a property
In Dubai, not all house banks offer mortgages. Each bank has its own list of houses that have a mortgage. Only the properties that are on the list are available for a mortgage. So if you want to choose a mortgage, you have to either consult the bank about which properties are available for mortgage or just ask the bank to provide you with the List of mortgage houses.
2. Pre-approval by banks
It is recommended that you start the pre-approval process for a bank mortgage loan while you are looking at the house. Because if you're have selected a property and want to sign a purchase contract, but you haven't gotten pre-approval from the bank at this point, the seller is probably not willing to sell it to you or there's very little room for you to negotiate the price. Even if you sign a contract, at that point if you can't make the deal because the mortgage does not go through, you'll likely have to pay a penalty, usually, 10% of the rate is a significant amount of money.
The so-called bank pre-approval is when the bank has reviewed and given you a contract, or offer letter, telling you the amount of loan the bank can offer to you. This gives you peace of mind that you are looking for a house and signing a purchase contract. However, it is worth noting that the contract is usually valid for two months, and if you don't see the property within two months, the document is expired and hence invalid and requires pre-approval.
3. Mortgage application procedure
If you've got a pre-approved contract and you're also selected your property, you're now ready to sign the contract with confidence. The following tells you the simple mortgage application process.
1. Buy a house and sign a purchase contract.
2. The bank will hire an appraisal company to evaluate the home.
3. Application for a Letter of No Objection by both the seller and buyer to the developer.
4. If the seller also has a mortgage, it will be relatively complicated, requiring the seller to get a repayment application from the corresponding bank, and then the bank that bought the house will pay the seller the amount of the bank loan.
5. Make an appointment with an agent to go to the Housing Authority for the closing process.
This is a simple guide about the process of getting a home loan. Basically, it takes about 1-1.5 months from the start of the mortgage application to the closing of the transfer.
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