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Buyers asked to get pre-approved mortgages
By Parag Deulgaonkar
Property agents not willing to risk deal breaking down later
Property agents in Dubai have started asking home buyers to get a pre-approved mortgage before beginning their search to buy a new house.
“Pre-approval is essential to have before looking for any property. There have been many buyers who have decided to start searching for properties and placing offers on verbal commitments from their banks, only to find that once they actually apply they are not eligible for the amount they were once promised, or do not have the sufficient documents to process the application,” Will Jones, Dubai Sales & Leasing Director, Elysian Real Estate, told Emirates 24|7.
“Without a pre-approval we will not enter into any negotiations due to timeline difficulties without a pre-approval, and possible budget deficit if a seller accepts a possible offer.
“Gaining a pre-approval from the bank is relatively straight forward which will come after checking references, past bank statements and monthly income etc in which once the banks have approved the loan amount the client will be issued with a pre-approval letter which is generally void after 20-30 days depending on the bank.”