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SPEAK TO AN ADVISER
Identifying the right mortgage can be a daunting task – there is more to consider than just the interest rates. Life Insurance, property insurance, Loan to Value are all important aspects that should be addressed before selecting your mortgage. Therefore, It is best to start the process by first speaking to a qualified mortgage advisor form a reputable firm. Larger Mortgage Brokerage firms are generally empaneled with most of the banks in the UAE and will have access to a full array of mortgage solutions, which will in turn will save you time and money on your mortgage.
PRE - APPROVAL
Once you have spoken to an advisor and selected the appropriate bank, the required documents need to be submitted to your advisor/bank for review and to obtain a Pre-approval. A Pre-approval is a declaration from the bank on your creditworthiness. It contains the basic terms of the mortgage – Loan amount, Loan-to-Value (LTV), tenor, interest rates etc. Obtaining the Pre-approval is the most time-consuming part of the mortgage process; therefore, it is advisable to secure a Pre-approval prior to selecting your property or signing the MOU. Having a Pre-approval will let you know exactly what your budget should be for the property. Pre-approvals are valid for 60 days.
VALUATION
The next step is valuation. Once you have selected your property and the MOU is signed, the bank will initiate a valuation of the property. The valuation is conducted by a third-party valuer, and the subsequent report will state the fair market value for the property. The valuation is an important part of the process since the bank will lend based on the valuation amount or the MOU amount, whichever is lower. If the valuation is lower than the MOU price, the buyer is responsible for covering the difference. Generally, valuations are valid for 45 days.
FINAL APPROVAL LETTER
This is the last step in finalizing the mortgage. The bank issues a final approval letter, which outlines the formal terms of your financing. Your mortgage advisor will help you review the final approval.
POST FINAL APPROVAL LETTER
Once the Final Approval Letter is signed, the bank will open an account in your name and request you to deposit your share of the funds into the account. Once the account is funded, the bank starts the process of issuing managers cheques to the relevant parties (i.e. Seller, Developer, Seller’s mortgage settlement etc)
PROPERTY TRANSFER
Once all the managers' cheques are issued, the bank schedules the transfer of the property at RAK Municipality
NEW TITLE DEED
Finally, at the RAK Municipality, when all formalities and payments are completed, A new title deed is issued. Congratulations you have now become a property owner! It will be our pleasure to help you navigate the seas of finding the best mortgage solution that meets all your objectives and requirements. Speak to one of our mortgage advisors today and obtain a pre-approval from a bank within days. We guarantee the best products with the best rates for you.
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