Posted On: 20 Oct, 2023, 08:50 AM Posted By: Admin
Most people filing for a mortgage are unaware of what questions banks might ask them as part of the procedure. The list of questions a bank asks and the required details don't differ but remain the same throughout the world.
However, you can expect few differences, owing to how every individual bank follows its principle for lending. You can always consult reputable mortgage brokers in Dubai to get an insight into all the questions that banks ask.
Here is a compilation of all the important questions that you should prepare yourself to answer during the mortgage application procedure.
The Bank Will Ask About Your Income
The bank is about to lend significant money. This is why they must have a clear idea about your income. Your income is a brilliant way to determine whether or not you will be able to fulfill the mortgage repayments every month.
What Does 'Income' Mean and How Does it Matter?
Income, however, doesn't only signify your salary but can also consider various other things including your employer-offered housing allowance, bonuses that you get for meeting targets and regular commissions. The mortgage lenders will evaluate every type of income and will assess the money that you can repay.
To get a sneak peek into all the mortgage deals that are suitable for you, consider taking professional help from mortgage brokers in Dubai. Besides, your income will also determine what size of mortgage you are eligible to get.
The Bank Will Ask About Your Outgoings
Your regular outgoings are equally important as your income. The bank can evaluate your overall purchasing power by subtracting your regular outgoings from your income. Banks can incorporate a stress examination that includes determining your affordability for mortgage repayments despite changing scenarios like increasing interest rates.
Before making your mortgage application, ensure that all your financial commitments like credit cards and car loans aren't due. You can speak to reputable mortgage brokers Dubai, UAE to know what can impact your affordability more.
They Will Ask What Property You Are Buying?
Always keep in mind that the property is the mortgage lender's only security against defaults. A lot of banks only work on listed properties. This way, lenders limit their lending criteria to specific types of property and areas only.
They Will Ask If You Have Down Payment and How They Originated?
Though not all banks would ask this, mortgage experts suggest that you remain ready to answer this. It is an important stage to understand that you can buy with your accessible down payment. The bank can ask you about your down payment origin to make sure you don't have any hidden debt and that there aren't chances of any third party coming and claiming a part of your property.
Apart from this, the bank will ask you about your details like your nationality, age, present address, family status, employment status and business interests. You will also be asked if you are self-employed. Get help from mortgage brokers when applying for a mortgage in Dubai to optimize your purchasing power.
Through their help, you can also access a vast network of banks and can customize your mortgage application according to your situation.