How to know if you qualify for a mortgage loan in Dubai
Many people dream of owning apartments for sale in Dubai to provide a home for the family where every one can have their own private space for comfortably, or increase their income by purchasing a studio flat in Dubai as an investment property, but the obstacle that often prevents them from achieving this goal is the matter of financing the purchase. It is not that easy for most people to secure enough savings that can be sufficient to buy a house, or they may have some savings but not quite the amount required to buy the property they need. In this case, having a mortgage from a bank or a financing company is a cornerstone of building this dream, but can anyone obtain a mortgage? Do banks and finance companies grant mortgages for all types of real estate properties, or are there special conditions or specific types of properties that banks would grant mortgages for?
Each bank or financial institution has its own conditions and criteria upon which to grant mortgage loans, and these criteria may differ from one financing company to another. That means you might apply to different financial institutions and have approval by some and rejection by others according to the criteria that each is following.
When you apply for a mortgage to buy apartments for sale in Dubai, the mortgage loans provider reviews all the details regarding your financial statements and study the application thoroughly to consider the factors affecting your ability to repay the loan and determine whether or not your application is accepted accordingly.
Among the things that financial companies will consider in making the decision is your fixed salary, excluding any temporary or non-fixed income that you can obtain exceptionally, such as end of service benefits for example. Moreover, the mortgage loans provider takes into account all relevant factors that may influence your ability to commit to repaying the loan like having other debts, including credit card debt, for example. As well as your lifestyle expenses and fixed expenditure, and all the factors that can have any impact on your ability to pay off the debt later.
Other factors that the bank or financing company takes into consideration are the amount that you apply for in order to buy apartments for sale in Dubai and the time required to pay it and whether your age is commensurate with this criterion.
The last installment of the mortgage loan if the borrower is a UAE national should be completed before the age of seventy. Whereas the specified age for the full loan repayment to expats is sixty-five in general and seventy years if the loan applicant is self-employed.
The mortgage loan provider also needs to study the status of the studio flat in Dubai you want to purchase, and to carry out evaluations with independent evaluators who are listed with the bank, approved by the Board of Directors.
You will need some documents to submit with the application for a mortgage loan such as a passport and an Emirates ID if present, a salary certificate for employees or a business license for private business owners, a bank statement for the last six months and some other special documents regarding the situation of each application individually.
Knowing your financial position, studying it, examining your budget, monitoring your general spending and monitoring all your expenditures to know its accurate amount; puts you on the right way to apply for a mortgage loan and increases your chances of obtaining bank approval for financing, especially when you meet all the other criteria mentioned previously. You might then find yourself an owner of a studio flat in Dubai with the least burden you could imagine.
For more related topics click on the links below: