Buy Villa in Palm Jumeirah
As long as real estate in Dubai is concerned, people will always have trouble making a choice with the variety of residential options offered in the city. Many people that reside in Dubai are usually torn between two choices such as; the decision to buy or rent a villa in a particular part of Dubai and the decision to either live in a modest apartment or a luxurious villa. As much as it is a good thing to live in a sought-after part of town, it is equally important to know the pros and cons that are associated with buying a villa in a specific section in the city. For the sake of this article, we will be focusing on Palm Jumeirah. If you are yet to buy Palm Jumeirah villa, then you should read on. This article will help you weigh your options accurately to prevent you from making avoidable mistakes.
Below are pros associated with buying a villa in Palm Jumeirah:
Security is a significant concern for very wealthy people all over the world. The feeling of being insecure more often than not prevents wealthy individuals from investing in luxury apartments. In as much as this is the case all over the world, the same cannot be said of Palm Jumeirah in Dubai. If you are looking to buy a villa in Palm Jumeirah, then you will not have an issue with security. This is because safety is a top priority of the Dubai government. As the owner of a villa in Palm Jumeirah, you can flaunt your worth because there is an assurance that no one would rob you of any of your properties.
How to Get a Mortgage to Buy Villa in Palm Jumeirah
A mortgage is an amount that is borrowed from a financial organization for the sake of financing the purchase of a property. It could either be to purchase residential property or commercial property. When a mortgage is meant for funding the purchase of a house, it is known as a home loan. Although a lease makes it very easy to finance the purchase of a property, it is essential to have a plan for repaying a mortgage before applying for one.
If you are reading this article, then chances are you have made up your mind to buy a villa in Palm Jumeirah and will need a mortgage. However, you may not need a mortgage if you have the cash on hand. However, if that is not the case, then you will need a mortgage from any financial firm in Dubai.
Steps in Applying for a Mortgage in Dubai
· Choose a Property
You will agree with me that there will be no need to finance a property if one does not exist. Therefore, before applying for a mortgage, you should choose a property that you are confident meets all your specifications. When selecting a property, there are two types of features that you can want from. They are;
- Off Plan property
- Ready Property
If you are applying for a mortgage to buy a villa in Palm Jumeirah for the first time, then it is very advisable that you go for ready properties. This is because as soon as the property becomes yours, you can either rent out or decide to live on the property. You can also begin getting returns on your property if it is rented out.
Unlike ready properties, the mortgage laws that bind off-plan properties are not so comfortable. As a result of this, individuals that are taking a mortgage for the first time might not be ready for it.
Get Documents for Mortgage Ready
Certain documents are required when applying for a mortgage to finance the purchase of a villa in Palm Jumeirah. Before applying for a mortgage, it is essential that you know what these documents are. With this, you can get them ready as soon as they are requested.
All things being equal, the documents that are required for a mortgage are;
- A copy of a valid passport
- A copy of valid visa (this is only for expatriates)
- A copy of valid Emirates ID
- A document showing your most recent salary
- A copy of a bank statement that contains salary details for the last six months
- Reports showing monthly liabilities such as car loans, credit card limits and personal loans.
- A copy of payslip in cases where variance in salaries exists.
The above documents are required only for individuals that are employees.
For individuals that are self-employed, the following documents are required
- A copy of valid passport
- A valid visa (this is for expatriates)
- A valid Emirates ID
- A document showing Memorandum of association and incorporation
- Reports are showing every single monthly liability such as personal loan, credit card limit and car loan.
After the above documents have been made available, such records as title deed as well as an agreement with the seller will also be needed.
Get a Pre-approval from a Bank or Finance Company
A pre-approval is usually provided by lots of finance companies as well as banks. This pre-approval gives you an idea of your eligibility for a loan when your income and liabilities are put into consideration. Although many people feel that they do not need this, it is imperative as it helps you decide if you are truly ready for a mortgage. Getting a pre-approval of finance is usually not free of charge, it comes with a fee.
The fact that you pay a fee to the bank to know if you are eligible for a loan means you should know the process that decides your eligibility. Banks adhere to your burden to debt ratio before determining if you qualify for a credit.
Wrap-up the Offer
As soon as the property gets finalized, your property details can be submitted to the bank. With this, banks can apply your property for pre-approval. As soon as this is settled, you will get an offer letter from the bank. This note will contain the details of the terms and conditions that bind the mortgage. It is essential that you take your time to go through the terms and conditions before deciding to act. If the terms and conditions appear unclear, then you should seek the services of a lawyer.
Transfer of Property
As soon as you obtain approval for the mortgage applied for, you will be issued a No Objection Certificate by the developer of the property. With this certificate, the ownership can be transferred from the seller to the buyer at the land departments. As soon as this is done, you will be issued a title deed by the land department.
Process of Mortgage Approval
Mortgage approval does not take so much time to get ready. It usually gets prepared in 7 days for individuals that are employed and a little longer than seven days for individuals that are self-employed.
It is recommended that you get a pre-approval form for your mortgage. With this, you will be sure that you are qualified for a mortgage. This also dramatically reduces the risk of having your mortgage application turned down.
With the availability of mortgages, you can easily buy a villa in Palm Jumeirah. All you need is be qualified and have a repayment plan.
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