Applying For a Home Loan? 5 Most Important Points to Keep in Mind
Taking a mortgage is likely to be the biggest financial commitment you'll ever make, so you'll want to find the best deal you can. And the good news is; there's plenty you can do to improve your chances of getting your mortgage application accepted.
Follow our top 5 tips to help you get the mortgage you want.
1. Your Credit Score matters
Before applying for a home loan, get a copy of your credit report from Al Etihad Credit Bureau. This will allow you to see what Banks and Financial institutions see when they review your application.
If your credit rating isn't looking that great, there are lots of simple things you can do which can improve your credit score.
2. Get your Paperwork Ready
When you sit down with a banker, they'll need to see a few important documents in order to complete your loan application. It's a good idea to have this paperwork on hand prior to that meeting. Here's a quick checklist of the records you'll need to prepare. Make sure you have the most recent copies of each of the following from the last two years:
- Income Documents (salary certificate, pay slips etc.)
- Bank and investment account statements (statement with regular salary credits)
- Existing loan statements, if any
- KYC Documents (passport with valid visa, emirates ID)
3. Create a Budget
Pulling your paperwork together will not only prepare you for your appointment with the banker, but also help you draft a budget. Taking a close look at your financial documents gives you a clear picture of how much you can realistically afford to pay for your down payment, monthly EMIs, interest, property taxes and insurance.
4. Start Saving
If you haven't already, you'll need to start saving as much money as you can for the down payment, which generally ranges from 15% to 25% of the property's price.
5. Make a (realistic) Wish List
Think about what you want from your home and why you're buying it. It's rare to find a home that has everything you want, but it's essential that the home you eventually decide on meets most of your current and future needs' while staying within your budget.
For example, if you're planning on having a family in the near future and living in your home long-term, you'll want to look for a house that you can grow into. Selling a home you've quickly outgrown can be a slow and expensive process. On the flipside, you also don't want to make an extravagant wish list that's difficult or impossible to achieve at your price point.
Do some online research to see what the average prices of homes are in your desired area and what you can get for your money. This way, you'll piece together a sensible wish list you can share with your realtor.
Once these steps are taken care of, you'll be more than ready for Home Buying!
Homely Yours for Home Buyers
Property experts at Homely Yours specialize in their target neighbourhood and have specific local knowledge about price trends, verified properties, holds all the local connections, and also negotiates on your behalf.
This helps homebuyers like you, find the perfect home faster and for the best price!
Curious to see what's new on the market?
Check out the latest homes for sale to list in your area by visiting our Property Finder section and find comprehensive details for each property: everything from asking price, to home dimensions, to property status.