How To Get Pre-approved for a UAE Home Loan

When it comes to purchasing a house in Dubai, there are many aspects you have to consider and important to keep in mind. Among these, getting home loans are at the top. But before getting a home loan you need to get pre-approval. So, you are wanted to know that how to get pre-approved for a UAE home loan then you are simply required to consult with the Taskmaster loan brokers who will completely help you throughout the whole process of getting a home loan and vital approvals.

In simple words, a pre-approved home loan is given in advance to the borrower, let alone finalizing it prior to starting looking for the property. This assures them that they would have prepared money when it comes time to make a procure. Shopping for a house can be exciting, but a serious home purchaser requires to begin the procedure at the office of the lender, not at home. Most vendors expect a pre-approval letter from the purchasers and would be keener to negotiate with people who prove that they get financing.

Potential purchasers require to present the documents to prove their income and asset, employment verification, good credit score, and other necessary documents to be pre-approved for a home loan.

Reasons to Get Pre-approved for a UAE Home Loan

Firstly, this would help you to have a sound idea regarding the budget for your new property. Hence, you would not have any heartache in the later stages after locating that your dream house is outside the purview of your budget.

Since the rates of property differ from location to location, with a certain budget, you would be able to choose a community where you can purchase a house as per your budget. Obtaining pre-approved for your home loan can streamline the whole procedure. Already in place with finances, the rest of the procedure would be relatively easy to handle.

A pre-approved home loan makes sure better protection. The purchaser requires to deposit 10% of the amount while signing the sale contract. If they get fail to arrange money at the time of buying a property, the payment has made initially will not be refunded. With sanctioned funds, there would be no such problems.

Criteria to Get Pre-approved for a UAE Home Loan

According to the eligibility Criteria, mortgage brokers and banks take into account your credit history. In addition, their financial structure and excellent loans are reviewed. Always keep in mind that certain banks may sanction loans to you with a fixed monthly income.

Apart from the financial situations, the lender asks you for vital documents that comprise, bank statement, copy of visa, passport, Emirates ID, and more. A vital point to be noted is that even if you complete the eligibility criteria and you are loan application is sanctioned, this does not mean you would be given funds immediately. First, you would be provided a pre-approved letter. This letter would present as proof of your ability to borrow. Hence, you can present it to the sales agent and begin looking for apartments in Dubai.

Prior to getting a home loan, this is vital for you to have an understanding of upfront costs. This comprises down payment, charges of the land department, and real estate agency commission. As per the central bank of the UAE, expatriates are needed to deposit around 25% of the property’s value if its sale price is less than AED 5 million. In addition, 4 percent DLD transfer charges and 0.25 percentage registration of a home loan are computed on the loan sanctioned amount. Lastly, the real estate agent has to pay a 2 percent commission. In certain situations, the purchaser can be needed to make the payment of loan setup charges, which can be on 1% of the loan amount.

Charges to Get Pre-approved for a UAE Home Loan

The applicant has to pay a minimum pre-approval fee of AED 1,000 to process the application. In addition, they can also require to deposit an additional amount at the same time of loan disbursement. This is the final fess of approval. Usually, it is 1% of the overall amount.

Pre-approve for a UAE home loan comes with a date of expiration or a validity tenure, which varies from institution to institution. Usually, the validity duration of pre-approval is for two months. Overall, getting a home loan pre-approval can save you from many hassles at later phases. Hence, this is always recommended to receive an assurance on the home loan prior to searching for listings.

Read More – All You Need to Know About Home Loans in UAE for Expats