Describe the steps involved in the mortgage application process

The process of applying for a mortgage in Dubai has a rigorous and systematic procedure in order that the interest of the financier and the buyer are well safeguarded. Here’s an outline of the steps involved:

1. Assess Your Financial Situation

When preparing to apply for a mortgage the first thing that needs to be done is to evaluate one’s financial status. This means that one has to get an understanding of own income, expenditure, amount owed and credit profile. Appraising the financial status shows how much of a mortgage you are capable of paying and also reveal any shortcomings that might affect one’s mortgage application.

2. Gather Required Documentation

Collecting all necessary documents is crucial for the mortgage application. The typical documents required include:

  • Copies of your passport and residency visa
  • Emirates ID
  • Salary certificate or proof of income
  • Bank statements from the last six months
  • Proof of residence (e.g., DEWA bill or tenancy contract)
  • Credit card statements​

3. Find a Lender

There are two options available over here where you directly contact a bank for the mortgage or you consult with a mortgage broker. In this type of mortgage, there is potential to obtain better industry rates, brokers’ recommendation, and access to a more extensive range of mortgage products. They also perform most of the tasks involved in the process so that you can dedicate your time in searching for your property.

4. Choose the Right Mortgage

Choose the kind of mortgage that is appropriate in meeting your needs as a client and the type of property that you intend to acquire. There are fixed rate deals, floating rate opportunity, as well as the Islamic mode of financing. Interest rates, loan term, down payment and flexibility in the payment methods are some of the critical factors to consider while choosing between the two.

5. Obtain a Pre-Approval Letter

A pre-approval letter from the bank proves your credit worthiness and the amount of money you are allowed to borrow for the mortgage. The letter also makes you be in a better standing when you are dealing with the sellers. In order to get pre-approval, submit your financial information to the bank to go through.

6. Find Your Property

After deciding on your budget and have gotten pre-approval, begin your search for the right home. Thus, preferably, before making a decision, it is necessary to address a RERA-registered agent to purchase a suitable property that would be affordable.

7. Finalize Your Property Purchase

Next is to arrive at the agreed price with the owner of the property of your choice. Ensure you make a deposit so that you can secure your purchase and also discuss the date on which the project is to be completed. Make sure that all the contracts are written down clearly and that the complied with all necessary legal requirements.

8. Submit Final Mortgage Application

Regardless of the case, submit all the documents that the lender has requested for the final mortgage approval. This is in relation to confirming the market value of the property and filling in all other necessary documents by the bank.

9. Property Valuation and Legal Due Diligence

See the property’s value in today’s market by getting a professional property valuation done on the property. It is advisable to perform legal research so as to verify if the property is free from any encumbrances. This step is important so as to prevent chances of getting into a loop holing situation that could deter the purchase.

10. Sign the Mortgage Agreement

Some of the conditions that one has to meet if he is applying for a mortgage include signing of the mortgage agreement upon meeting of all the conditions and issuance of the final offer letter. Always make sure that you are well conversant with any interest rates, repayment times and any charges that are related to it.

11. Property Transfer and Disbursement

Organise all the stakeholders and ensure that all the transfer of the property is done is done adequately. This entails paying the seller the mortgage through a bank transfer and also transferring the property to your name from the Dubai Land Department​.


Mortgage Application Process in Dubai Quiz


Find a property
Assess your financial situation
Submit the final application

Proof of income and bank statements
Passport and Emirates ID
All of the above

A document that confirms eligibility for a mortgage and the maximum loan amount
A contract to buy a property
A receipt for your down payment

The property’s market value is assessed and legal checks are conducted
The buyer pays the down payment
The mortgage agreement is signed

Submitting initial documents
Property transfer and disbursement of funds
Getting a pre-approval letter

Quiz based on information from 95dubai.com

Related Resources
What role do mortgage brokers play in securing a mortgage?
What documentation is required for a mortgage application?
What are the key mortgage regulations set by the UAE Central Bank?
What are the eligibility requirements for obtaining a mortgage in Dubai?