The pre-approval stage is the initial step in securing a non-resident mortgage in Dubai. It involves:
The lender reviews the applicant's financial standing, including income, employment status, and credit history.
Applicants typically need to submit documents such as a copy of their passport, proof of income (e.g., salary slips, employment contract), bank statements, and credit reports.
If the lender is satisfied with the applicant's financial situation, they will issue a pre-approval offer, which outlines the loan amount, interest rate, and terms the applicant is eligible for. This offer is usually valid for a limited period.
With a pre-approval offer in hand, the next step is to:
Applicants can now focus on finding a property that fits their budget and investment goals. This includes residential, commercial, off-plan, or ready properties.
Once a property is selected, the lender will conduct a valuation to determine its market value. This ensures the property is worth the loan amount being requested.
Once a property is chosen, the final application process begins:
Applicants need to fill out a detailed mortgage application form provided by the lender.
Additional documentation may be required, including a sales and purchase agreement, property details, and any additional financial documents.
The lender conducts legal checks, including ensuring the property is free from legal disputes and verifying the authenticity of documents.
After completing the necessary checks:
The lender issues a formal loan approval, specifying the loan amount, interest rate, repayment terms, and any special conditions.
The lender provides an offer letter, which the applicant must sign to accept the terms and conditions. This document legally binds the borrower to the loan agreement.
The final steps involve:
The mortgage must be registered with the Dubai Land Department. This legalizes the mortgage and provides security for the lender.
Once the registration is complete, the lender disburses the loan amount, either directly to the seller or through an escrow account, depending on the agreement.
After the mortgage is secured and the property is purchased:
The borrower begins making monthly repayments as per the agreed schedule.
It is advisable to secure property insurance to protect against potential risks and damages.