"Thinking of buying your first property in Dubai? Buying a home is an exciting but often confusing process, especially for first-time buyers. That’s why it’s good to be as prepared as possible. There are a few things you can do before you even start looking at properties that will help make the buying process as smooth as possible.
Work out your budget
We’re all guilty of looking at homes that are way out of our budget when browsing online but when it comes to buying a property it’s important to know what your budget is. Your budget should take into account not only the price of the property but all other costs involved in the home buying process as well. These range from real estate agent fees, bank fees, deposits, mortgage broker fees (although there are some free options, like Huspy), amongst others, depending on your situation.
If you’re planning on taking out a mortgage, you should be clear on what you will be repaying every month. Depending on the type of mortgage you choose, this might vary - so you should always include a buffer in your budget to leave room if your monthly payments increase. You should also be aware of any additional monthly fees you may be responsible for with your property purchase, such as service charges and life and property insurance.
Not sure what you can afford? Take a look at our ‘mortgage eligibility’ blog for a deeper dive. You can also try out our mortgage calculator.
Identify why you want to buy
Why are you buying a property? This may sound like a simple question, but defining the reason you’re getting onto the property ladder in Dubai is important to know, as it will affect the questions you ask and the decisions you make down the line. What you decide will have an impact on the area you choose, the type of property, and the type of loan you may wish to take out. For example, if you’re buying to rent the property out & make a profit, or at least cover your mortgage fees, you should have a good idea of what the current market price is and the potential rental yield of the property.
Consult the professionals
Buying a property is probably the biggest purchase you will make in your lifetime. There are a lot of intricacies involved, especially if you’re not familiar with UAE laws and regulations. That’s where the experts come in. When looking for your dream property in Dubai, a licensed real estate agent will be able to advise you on the best areas & properties based on your criteria. Make sure to check they have a RERA license, are experts in the local market, and have good reviews from previous clients.
When it comes to getting a mortgage, you can seek advice from a mortgage broker. They will help you navigate the often confusing process of finding the best mortgage & handle all the paperwork that is involved. Don’t want to pay for mortgage broker fees? Use Huspy & we’ll guide you through the entire mortgage process from pre-approval to securing the best mortgage, all for free.
Improve your credit score
If you’re planning on financing your property purchase with a mortgage a healthy credit score can be helpful. A high credit score will put you in a good position to be approved for a mortgage, although there are other factors that you will also need to consider (you can see them all in our blog, ‘how to get a mortgage and buy a property in Dubai’). Worried you might have a low credit score? Learn how you can improve it in our blog ‘4 tips to improve your credit score’.
Get a mortgage pre-approval
Getting a mortgage pre-approval will put you ahead of the competition when buying a property and shows you’re serious. Some real estate agents won't even take you on a viewing without one, so it’s a good idea to do this before you start searching for a property. A pre-approval will also tell you exactly what the bank is willing to lend you, making it easier for you to get a realistic idea of what you can borrow and narrow down the properties you look at. While a pre-approval does not guarantee you a mortgage, it is an essential first step in financing your dream home.
Buying a property is not a simple process. There are multiple stakeholders involved, laws & regulations in place, and it’s often the biggest purchase of your lifetime. That’s why it’s important to understand the process from beginning to end so you’re fully prepared for the exciting journey of getting on the property ladder.
Looking for mortgage help?
If you’re looking for advice about the mortgage process, Huspy’s team of in-house experts has over 25 years of experience from the best banks in the region. Our service is free, so give us a call on +971 58 106 8459 or email us at hi@huspy.com. The best part? You don’t even have to leave the sofa! "