UAE is an eminent country all over the globe for investing purposes. Investing in real estate is a complex task, but the best way to go about it is through a loan. Before applying for a home loan in the UAE, it is essential to understand the regulations and policies of the lending institution. It is also important to compare different banks and their offers so as to make an informed decision.
With the right guidance and assistance, it is achievable in less time, and at eMortgage, we provide comprehensive assistance to individuals looking to purchase a home or get finance for their existing property.
Let’s get back to the home loan process in the UAE.
What is a Home Loan?
A home loan is a type of loan used to purchase real estate, such as a house or an apartment. These loans are paid back over an agreed period of time in regular instalments, with the interest and other costs deducted from the payments.
Home loans are generally secured by the property itself, meaning that if you fail to make payments and default on the loan, the lender has the right to repossess your property. As such, if you are considering taking out a home loan, it is important to make sure you can meet the repayments without putting your property at risk.
Few things You need to know before Applying for a Home Loan in the UAE
There are umpteen things you need to consider before applying for a home loan in the UAE.
- Getting pre-approval
It is advisable to get pre-approval before applying for a home loan, as it will help you determine if you can actually afford the loan.
- Gather the required documents
Make sure that you have all the necessary documents ready before submitting your application. This includes financial statements, proof of income and other relevant documents.
- Check your credit rating
The credit score given by the bank to an individual indicates their financial reliability and trustworthiness. Before applying, it is important to make sure that your credit rating is good enough to secure a loan.
- Consider the cost of the loan
Home loans usually come with high-interest rates and other costs. Make sure to calculate the total cost of your loan before signing any agreement.
- Understand the terms and conditions
It is essential to read through all the paperwork carefully to understand exactly what you agree to. Before signing any loan agreement, it is important to understand all the related terms and conditions carefully. This way, you can avoid any hidden fees or unexpected costs.
- Fees involved
Although every loan type has its own fees, it is especially important to be aware of the attached fees when taking out a home loan. In the UAE, application, arrangement and property valuation fees are commonly associated with home loans. Furthermore, many companies charge administration charges on a yearly or monthly basis – make sure you know how much this will add to your overall debt.
- Finalize your property purchase
Once you have found your desired property, the next step is to reach out to your bank to finalize the loan agreement. Your bank may assign an evaluator to gauge the value of the property and help you make an offer. Once both parties have agreed on a price, you can pay the deposit and decide on a completion date for the purchase. On the day of the property transfer, your bank will release the loan amount to the seller, making you the official owner of the property.
How can Emortgage help you while in the processing time?
At eMortgage, we make sure that you have access to the best home loan options available in the UAE. Our knowledgeable and experienced team of advisors will be there with you every step of the way, ensuring a hassle-free experience. We understand that taking out a home loan can be overwhelming, so we have created an easy-to-follow guide that explains everything you need to know about the process.
Our team of experts is here to provide professional advice and accurate information so that you can make an informed decision regarding your home loan. So if you are looking for reliable and efficient home loan assistance in the UAE, contact us today! We will be more than happy to help.