Buying A Ready-to-Move-in Property From The Secondary Market With A Mortgage
Many people make the decision to buy apartment in Dubai, thinking all they have to focus on is that they have a sufficient budget to buy the property they want. But when the time for picking the property actually comes, they discover that there are several other things they have to bear in mind upon making the decision to buy apartment in Dubai.
When it comes to finding apartments for sale in Dubai, there are many things that should be taken into consideration, because it is the place where you and your family will spend most of your time and perhaps a long period of your life. There are many factors that contribute in making a house comfortable for everyone who live in it making life easier and more joyful.
Choosing the location where you’ll search for apartments for sale in Dubai, for example, is very important when you want to buy apartment in Dubai. It should be based on the needs of the family, which differ from one family to another. The availability of nurseries, schools, universities or a specific educational institution close to the family’s residence may be one of the essentials requirements for the family. Or perhaps one of the family members travels a lot according to their work requirements, which means the need to live in a location close to the airport to reduce the time spent on roads, and accordingly many other examples are applied.
There are other important factors like the size of the property, the style of the neighborhood and the measure of privacy provided to the property within this neighborhood or community, as well as the facilities and services available around, the real estate developers Dubai of the project and finally The price of the house or apartment, you can learn more about the subject by clicking here.
Another important factor that helps determining the property that you want to buy is its status, and whether it is ready to move in immediately or it’s still under construction. The Dubai property market offers the option to purchase ready to move in properties or off-plan properties, which are the properties under construction to be handed over on a specific time in the future. Determining your intention of purchasing the property will help you determine whether you want to buy a property that is ready or under construction. If your decision was to buy a ready to move in, then you have another decision to make. You need to decide whether you to buy the property from a developer or from the secondary market, that is, buying a property that is resold through its owner.
While you can find some ready to move in properties that are offered by real estate developers Dubai, the options offered by the secondary Dubai property market to choose ready properties are much more numerous and are varied.
Both the off-plan Dubai property market and the secondary property market provide a set of advantages and offers to make you prefer one to the other. According to your circumstances and needs.
The option to buy a property from real estate developers Dubai allows the buyer to pay for it in multiple installments according to a payment plan that includes a down payment of a certain percentage of the property’s total value that varies according to the developer and from one project to another. But when it comes to purchasing a property from the secondary market, the buyer should pay the whole property price in the day of purchasing it before the ownership could be transferred to their name. This may impose difficulty on some buyers, as many buyers cannot provide sufficient cash to buy the house they dream of owning, which make them go to having a mortgage to buy the ready property they choose from the secondary market.
The first step that the buyer must take when they buy apartment in Dubai with a mortgage, is to apply for a pre-approval to a bank or financial institution granting this type of loans. The pre-approval provides the seller with proof of the buyer’s commitment.
When you apply for a pre-approval for a mortgage, it is important to consider your financial situation to know the likelihood of accepting your application. For example, it is important to note that having many credit cards has a negative impact on obtaining approval because banks will take the credit limit for all the current cards that you own in studying your fixed monthly income that you will pay for the loan with.
Banks in the United Arab Emirates can provide a mortgage on properties with different percentage financing according to value of the property and whether the buyer is requesting a loan to finance his first property or if he already owns other properties. To view more details about mortgages in Dubai, you can click here.
The buyer will have to provide the percentage of the property price that is not covered by the mortgage in order to be able to pay the full amount to the seller upon signing the sale and purchase agreement (SPA).
After the buyer guarantees the prior approval of the bank, they can choose from the apartments for sale in Dubai the one that meets the requirements they have in mind, which is in line with what their financial situation allows.
Once the buyer has settled on the apartment in Dubai they want to buy and a price has been decided on between the two parties, the next step would be signing the Form F of the Dubai Land Department or as known as the Memorandum of Understanding (MOU). The Memorandum of Understanding is the purchase agreement between the seller and the buyer outlining the deal details such as the final agreed price of the property and the commission that should be paid to the agents of both parties.
After that, the contract must be submitted to the bank to be reviewed and to evaluate and compare between the price agreed upon in the contract with the actual Dubai property market value of the sold property. This is done by an independent specialized evaluation company, which provides a full evaluation report according to which the value of the financing that the bank will grant to the loan applicant is determined. If the report mentioned that the price value of the property is lower than the agreed value, the loan will provide financing based on the price mentioned in the evaluation only, and the buyer must arrange the difference between the two values.
The next stage is signing the final agreement for the loan, after which the seller, the buyer and the real estate agents of both parties visit the project developer office to obtain a no objection certificate (NOC), according to which the bank completes the preparation of the manager’s checks in the name of the seller, through which the purchase will be made.
After that, a date is set to visit the real estate registration trustee's office to sign the title deed and transfer the property to the purchaser’s name, and pay the full payment of the property price to the seller, as well as the broker's commission according to what is mentioned in the memorandum of understanding.
It is good idea to seek advice from professional real estate consultant to accompany you through the whole buying journey, from the early stages in order to benefit from their experience in the Dubai property market and the knowledge of details about apartments for sale in Dubai, that can spare you a long time of searching and diving into a large amount of information that may cause you confusion more than helping you to choose what suits you. not to mention the hassle that a real estate consultant can spare with their knowledge of the process, especially after choosing your property and starting the actual purchase process.
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