1. Be clear in Purpose.
Like most things in life, defining what you want and why you want it are crucial for any successful outcome. The questions are very simple, but the answers aren’t most of the time.
A mortgage consultant can help you clarify lot of doubts and ambiguities you may be have with respect to mortgage/ home finance.
Some of the important questions to be answered while defining the purpose of mortgage are as follows.
a. Are you buying a property for self occupation or as an investment?
b. How much funds you have in hand and how much financial leverage capability you have?
c. Have you shortlisted any particular location or a property?
d. How soon do you plan to settle the outstanding home finance?
2. Learn more about different mortgage products that are on offer in the market.
Based on your purpose, you need to identify which banks product fits your objective well.
There are two crucial aspects in identifying the right product.
a. How much funds will bank provide and how much will you contribute?
– UAE based banks don’t solely rely on your income to decide on your mortgage loan, your employer name, your length of service/ your length of business, your industry of employment and many other parameters are taken into consideration. Even the down payment requirements vary for different properties and different customer segments.
A mortgage broker / mortgage consultant can help in short listing the right banks based on your profile.
b. What are the overall costs for concluding the mortgage loan?
– The costs are not limited to interest rates/ profits rates and the initial teaser rates should not be your sole decision making point. There are many ancillary costs associated with the mortgage loan viz. Pre Approval Fee, Processing Fee, Fixed Period Rates, Variable Period Rates, Life Insurance Costs, Property Insurance costs, etc. These costs vary from bank to bank and we at 4C, we can help you in briefing all banks mortgage offering in detail, so you can decide the right product for you.
3. Choose your Mortgage Consultant wisely.
Mortgage process is lengthy and time consuming. It is important that the person who is offering you a mortgage product is not only a subject matter expert but is also patient and transparent in his/ her approach and is coming from a duly licensed company. Remember, mortgage is a high value financial transaction and you need a professional by your side to help you conclude your purchase in timely manner. During your first one or two interactions, you should be able to decide if you are comfortable in doing business with the particular mortgage consultant.
4. Be patient with paper work
Unlike any other country, obtaining mortgage in UAE is time consuming and involves lot of paper work. If you are Salaried, the banks would like to see your salary certificate, pay slips, six months original bank statements in original along with the passport & visa copies.
If you are self employed, be prepared with your 2 to 3 years audited financial statements, your personal and business bank statements, and many more supporting documents based on your business profile.
5. Don’t sign property purchase MOU (Sale Agreement) without a Pre Approval
It is strongly recommended that you only sign the property purchase agreement after you have managed to seek a Pre-approval from the bank. A Pre-approval is the maximum mortgage finance limit issued by the bank after completing the review of your financial documents. Once you are pre approved and have arranged your own funds, you can sign the property purchase agreement to successfully conclude your property transaction.
6. A negative reply from one Bank doesn’t mean and end of your dream home.
UAE based banks work mainly on parameter based approach and with some discretionary underwriting practices. Each bank sets its own parameters for different customer segments. If you have received a negative reply from one bank doesn’t mean other bank will not be able to offer you the mortgage loan. Explore your options with the help of 4C Mortgage Consultant.