With today’s market, more and more buyers are entering the market buying a property in Dubai for the first time. The process will be different to what most will be used to and you may have limited knowledge of it which may seem daunting.

That’s where Home Matters can help. Using an independent consultancy such as Home Matters will benefit you by helping us guide and support you through the process. To give you a flavor we have put together some of the most commonly asked questions from our clients:

How long does it take to obtain a mortgage pre-approval?

Approximately 3-5 working days for employed applicants, once the bank is satisfied with the documentation provided. Approximately 10 working days for self-employed applicants, once the bank is satisfied with the documentation provided. Home Matters has secured pre-approvals in significantly shorter timeframes for certain clients. However, above are realistic timeframes for most applicants.

How long is my pre-approval valid for?

Pre-approval validity periods vary between 30-90 days depending on the bank. Revalidation of expired pre-approvals is possible, subject to product availability and updated documents.

Is a mortgage pre-approval a guarantee of finance?

Yes, subject to meeting the bank’s terms and conditions and providing the applicant’s profile/circumstances do not change prior to disbursal of the mortgage. The exact amount of finance is dependent on the UAE Central Bank maximum Loan to Value limits and the property valuation.

What is the process for buying a secondary market purchase through a real estate agent (resale property)?

Once you have identified a property, you should negotiate and agree on a purchase price through a RERA (Real Estate Regulatory Authority) registered real estate agent. Once the price and sale are agreed by the parties, your agent should draft a standard land department property sale contract which should be reviewed and signed by the buyer, seller and agent. A security deposit of 10% of the agreed purchase price will be required from the buyer and many agents will also request the same from the seller. Most agents will hold (without cashing) security cheques for the parties and will return them upon successful completion of the transaction. Some agents will request immediate encashment of the buyer’s security cheque. Buyers accept this at their own risk and should note that if the agent does not have a proper ESCROW account, their funds could be at risk.

What happens if the property valuation is lower than the agreed purchase price?

Your mortgage is subject to the maximum Loan to Value (LTV) offered by the loan provider. The final loan amount will be based on either the valuation or the purchase price, whichever is lower. You would be required to bridge the gap between the lower valuation and purchase price through your own funds.

How long will it take to complete the property purchase?

Generally, 4-6 weeks if the seller has no existing mortgage on the property and 6-8 weeks if the seller has a mortgage.

What happens if the seller has a mortgage?

Depending on the outstanding balance, the bank will pay off the seller’s mortgage from your loan amount. Any difference over your agreed loan amount and up to the purchase price would need to be paid by the buyer. If the outstanding seller mortgage is greater than the agreed purchase price, the difference between the purchase price and the outstanding seller mortgage should be paid by the seller. All payments are made simultaneously. Your mortgage manager can explain this in greater details.