A mortgage pre-approval is like getting a green light from a bank before you start looking for a home. It means they’ve checked your finances and decided that you’re eligible for a mortgage up to a certain amount.

It helps you understand your budget and shows sellers that you’re a serious buyer when you’re house hunting. But remember, it’s not a guarantee of a loan; final approval depends on your chosen property and additional factors.

While it’s not an absolute requirement, pre-approval is a valuable step that provides financial clarity and confidence in the home-buying process, benefiting both you as the buyer and potential sellers.

Pre-approval is highly recommended for several reasons:

Budget Clarity
Pre-approval helps you understand your budget and the amount you can borrow.
It prevents you from searching for homes that are out of your financial reach.

Seller Confidence
Sellers often prefer dealing with buyers who have pre-approval because it demonstrates your seriousness and financial capability. This can make your offers more attractive in a competitive real estate market.

Faster Process
Having pre-approval in place streamlines the home-buying process.
When you find the right property, you can move quickly to secure it since much of the paperwork and financial checks are already completed.

Negotiation Power
With pre-approval, you can negotiate confidently, knowing that you have the financial backing to complete the purchase.

Interest Rate Lock
Some lenders may allow you to lock in an interest rate for a specific period with pre-approval, which can be advantageous if interest rates are expected to rise.

A mortgage pre-approval In the UAE is typically valid for around 30 to 60 days.

This means you have this amount of time to find a property and proceed with the mortgage application before you may need to reapply or renew the pre-approval

When applying for a home loan or home finance in the UAE, there are several key factors you should keep in mind:

• Lenders in the UAE rely on your credit history to assess your creditworthiness.
• Down payments are usually around 15% (UAE Nationals) – 20% (Expats) of the property’s value. Having a larger down payment can sometimes lead to better loan terms.
• Lenders want to see that you have a consistent and reliable source of income to make the mortgage payments.
• Compare interest rates and loan terms from various lenders to find the best deal. Interest rates can vary, so shop around.
• Choose the mortgage period that best suits your financial situation — usually 15 to 25 years. Longer terms mean lower monthly payments but higher interest costs.
• Be prepared to provide the necessary legal documents, including proof of identity, proof of income, and financial statements.
• Choose a mortgage broker with a track record of transparent dealings and good customer service.
• Seek advice from mortgage brokers to ensure you make informed decisions.