If you are planning to buy a property in Dubai, chances are that you have already evaluated different options to arrange for funds. Some people, particularly seasoned investors, arrange finances by selling existing properties. However, for a person who has just entered the Dubai real estate market, their only resort is to use their entire life savings or apply for a home mortgage.For the latter option, the biggest hurdle is getting the mortgage loan approved. “How can I get approved for a mortgage quickly”, this is one of the most frequently asked questions to real estate experts in Dubai. If you are also trying to find an answer to this question, you have landed at the right place.Have a look at some of the effective tips you can follow to get a quick mortgage approval:
Select the Right Type of Mortgage
Homebuyers in Dubai can opt for different types of mortgages. Some of the most common among them are:
Capital and Interest Repayments
Mortgage Life Insurance
Fixed-Rate Mortgage Payments
Variable Interest Mortgage Payments
Carefully evaluate each type, measure its pros and cons, and then make an informed decision. The mortgage type you have selected will greatly impact the loan approval.
Select the Lender Wisely
Other than the type of application, you also need to choose your lender wisely. You can either contact a bank, loan originator or contact your broker to apply for the loan on your behalf.Again, you need to analyse each option thoroughly. In case you are planning for a bank loan, contact different banks and go through the terms and conditions in detail at which they approve the loan. Also, know about the eligibility criteria. Applying for a loan with a bank or loan originator and then getting declined will result in delays and, of course, disappointments. So, if you feel you aren’t eligible for the loan mortgage, it’s better to hire the services of a professional real estate broker.
Have Your Documents Ready
You can easily find information on documents required to apply for a home loan mortgage easily on the internet. So, it’s always a wise idea to have all your documents ready before applying for the loan. Generally, these are some of the documents banks/private lenders ask at the time of the loan application:
Copies of passport or other personal identification documents
Proof of residence in Dubai
Evidence of current address
Documents depicting your creditworthiness. These include tax returns, bank statements, salary slips etc.
Documents that support your affordability
Note: The requirement of documents may vary from bank to bank. Thus, it is important to get relevant information before arranging documents.
Know about Home Buying Rules
This one’s more important for expats. As home-buying rules are different in every country, it is important to know about them in detail before exploring offers for houses for sale in Dubai. Also, bear in mind that expats can own properties in certain areas in Dubai only.If you are well aware of these rules, chances are that there will be no unnecessary halts in your loan application processing.
Offer to Make a High Down Payment
Making a high down payment offers more than one benefit. Firstly, banks and lenders prefer applicants who are willing to make a big deposit up-front. As a matter of fact, some banks may require expats to make a bigger down payment to approve their loan application. Another great benefit of making a bigger deposit is that it can help you to get the loan at a lower interest rate. Lastly, you will be able to repay the loan rather quickly.
Know Your Credit Score
Banks tend to take into account the credit score of the applicant before approving a home loan. It is one of the most important requirements a borrower has to fulfill in order to get the loan application approved. Therefore, it is pertinent to know about your credit score and credit history. And if you want a quick approval, make sure the credit score is high and history doesn’t contain any element that can put you in the rejection list.
Clear Existing Debts
Lastly, try and clear your existing debts before applying for a new one. It will improve the chances of getting quick approval as it will positively impact your affordability.There you have it! Following these tips before applying for a mortgage property in Dubai can surely help to quicken the process. If you want more information, feel free to get in touch with real estate experts at Zoom Property.
All You Need to know about Escrow Account in the UAE