Useful Tips to Get Your Home Loan Approved Quickly in the UAE

By : Eva

Saving a lot of time to get your loan of home approved in UAE is possible through planning and with organizing the work. Provided with proper strategy, you will be able to make the process faster without any possible unnecessary delays. The following are some of the tips that you could use in order to get your mortgage easily.

Learn about Economic Condition

You need to review your total financial position before you start applying a home loan. Keep a review of your income, monthly expenditure and any members of debt. When you have a low ratio of debt to income, then you have an improved chance of securing loan approval. Ensure that your revenue is stable and attempt to decrease debts. Your loan providers will look into your financial patterns and provide a good stable financial picture. By preparing your finances in advance, you will know how much money you can borrow and prevent setting back or turn-downs later on, in the application process.

Credit Rating should be Good

The credit score is instrumental to the rate at which your loan is approved. Good score makes you trustworthy to the banks.

Get in touch with your credit report at least once per month
Clearing unpaid bills of credit cards
Keep away from delayed payments

In case you do not have a good credit background, then spend a couple of months and make it good before you apply.

Select The Correct Lender

Various banks and financial institutions quotations are different in terms and interest rates. Conduct a thorough researches in order to identify a lender that suits you.

Compare rates of interest
Consider tenure on loans and processing fees
Review customer evaluation and ranking of service

Choosing an appropriate lender will eliminate the burden of documents and accelerate the procedure.

Get Pre-Approval

It demonstrates lending institutions have considered your financial characteristic and are ready to provide a specific amount of loan. This does not only save time but also helps you gain credibility with the sellers. Pre-approval will enable you to make a realistic budget and not make unwanted delays. It also makes you confident in negotiating and reduces the time taken to secure the loans in the future.

Maintain a Good Work History

Providing a buyer has a steady job-history, preferably in the same job, or industry, over a period of two years, lenders will favor them. Stability reveals financial stability and reduces the chances of default. It can give rise to concerns when either you have changed your job very often or have employment gaps. Stable income will give comfort to the lenders that you will be able to fulfil the monthly payments on the mortgage, hence your increased chances of being accepted to take a home loan.

The Down Payment Excepted

It is important to make sure that one has the substantial down payment in place when seeking a home loan. It exhibits financial conservativeness and diminishes risk to the lender. Larger down payment also has the advantage of reducing your loan-to-value ratio, which will help you to have cheaper interest rates. Have a goal of saving at least a twenty percent of the value of the property so that you can have a good opportunity of getting a loan approved of you without facing any extra costs such as a private mortgage insurance.

Order all the necessary documents

Loan delays mainly occur due to incomplete paper work. All the documents should be prepared in advance:

Copy of passport and visas page
Emirates ID
Salary certificate or trade license (in case of self-employed)
Bank statements (the past 6 months)
Down payment evidence

Having these documents in place will make the bank handle your loan very quickly.

Pay Offstanding Liabilities

It is prudent that one clears all repayments of existing debts like credit cards, personal loans or car loans before taking a home loan. Paying off your debts lowers your debt-to-income ratio, which is considered one of the important aspects that lenders consider when they lend money to people. This ratio reflects that your financial health is good and the lower it is the more you will be able to borrow money. This also improves your credit score thus making you a better and more appealing borrower to lenders.

Avoid Applying in Different Banks

It might appear as a great idea to send many applications to many banks simultaneously, although this can only damage your credit score.

Too many loan inquiries in a short time raise red flags
Focus on one or two trusted banks
Wait for a decision before approaching others

Targeted applications increase your chances of quick approval.

Consult the Mortgage Consultants

In case you do not know how to do it, you may take a mortgage consultant. They can:

Assist you to select the best offers of the banks
Help to fill out forms and qualification
Impose your negotiating on your behalf on the terms

They will be of great help in dealing with tricky loan requirements.

Become Open and Direct

It is necessary to be open and candid in the process of taking home loans. Be honest and truthful in the financial aspect of your application such as income earned, debts owed and employment status. Lenders thoroughly check documents and in case of not meeting documents one can just be rejected. The misrepresentation of information can mar your credibility and cause delay in approval. Being open and trying to build trust with the lender will give you a better advantage of an easy loan process as well as successful mortgage approval.

Follow up the Market situation

Depending on the state of the economy, the interest rates and the policies that banks apply to lending are quite likely to vary. Keep abreast of the current trends.

Use it when the interest rates are low
Select the fixed or variable rates depending on the market
Appreciate offers or promotions by the bank

This will allow you to get more and better offers plus they will be able to serve you faster once you get the move at the right period.

Final Thoughts

It is quite possible to get your home loan advanced in the UAE within a very short period through preparation. Keeping a sound credit profile, making some down payment, selecting an appropriate lender and getting your paper work in order can cut down the waiting time substantially. The only way is to be proactive, knowledgeable, and transparent to sail through loan approval process successfully.