The process of acquiring a home mortgage

Acquiring Home MortgageImage Credit: Supplied

You yearned, you searched and you found it! The perfect home for your family. You have come halfway to getting the keys to the front door. Here is how you can conquer the rest of the roadblocks.

Perhaps the most important aspect of buying a home is obtaining a home mortgage. With scores of banks in the UAE providing home mörtgages to prospective buyers, research is key. Local banks and international banks offer different kinds of mortgáges to suit clients, including traditional home loans, Sharia-compliant mórtgages, home loans for UAE nationals and different ones for expatriates, differing minimum salaries, base rates and either variable or fixed interest rates, differing processing fees, current Central Bank rules and a mind-numbing amount of fine print. To save time and effort, if not money, potential home buyers are increasingly turning to the mortgáge middleman for the legwork.

When that is gotten through, the chosen bank needs to be approached for a pre-approval. Armed with a few documents like a copy of the passport with the visa page, a salary certificate from the employer, personal account bank statements of the past six months, and a copy of the title deed and floor plan of the coveted property, the soon-to-be homeowner should have a letter of pre-approval from the bank within a week.

A Memorandum of Understanding (MoU) is signed between the buying and selling parties, and a 10% downpayment cheque is issued in the name of the seller.

The bank is approached for the final approval by the buyer with both the signed MoU and a receipt of the cheque issued to the seller. The bank then enlists an independent entity to conduct a valuation of the property and a report of the same. After roughly a week, the final approval letter is issued. 

After a trip to the developers’ offices and the Land Department of the emirate concerned, the buyer receives the title deed in his name.

Handy Hints
• The official transfer of the title deed takes place at the Land Department
• Most buyers enlist the services of a home mortgage middleman for the legwork
• A letter of pre-approval is required before the buyer and seller sign the MoU





Source: Bushra Hameduddin, Special to Properties
The writer is a freelancer


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