Numerous facilities, breathtaking views and ease of taxation laws make Dubai a popular choice among home-buyers. However, buying a property in the Emirate can quickly become overwhelming if one is unfamiliar with the processes. A mortgage broker helps in assisting with the financial aspects of buying a property and the steps involved in it.
Mortgage brokers save clients’ time and effort by simplifying the mortgage process, and providing valuable guidance and support. They also coordinate with other professionals involved in the home-buying process on behalf of clients.
We have compiled a list of the drawbacks and benefits of using a mortgage broker in Dubai. These details will help you choose the right mortgage broker for property dealing.
Purpose of Using a Mortgage Broker in Dubai for Property Dealings
A mortgage broker acts as a negotiator between the borrower and the lender. They understand clients’ financial situations and goals and then match them with the available types of mortgages in Dubai. In simpler terms, a mortgage broker helps a client find the best financial borrower for their property.
Mortgage brokers in Dubai have a deep understanding of the real estate market. They also have connections with various banks and financial institutions that offer mortgage products. Their expertise helps in different aspects that are important to know before securing a mortgage in Dubai. They also provide expert advice on different processes of property dealing.
Now that we are aware of the basic role of mortgage brokers, let us go through the pros and cons of using a mortgage broker in Dubai.
Pros and Cons of Using a Mortgage Broker in Dubai
Buying your dream home is a paramount decision. It requires a sound financial amount in addition to considering other factors of purchasing a property. These aspects require professional assistance like hiring a real estate agent to find a desired property. When that is done, the process to own that property can become tedious. To assist in the matter, many people turn to mortgage brokers who help in approving property finances and provide professional advice on the matter.
Apart from the benefits that come with using a mortgage broker in Dubai, there are some drawbacks that one must also consider. We have put together the advantages and disadvantages of using a mortgage broker in Dubai to help you make an informed decision.
Pros of Using a Mortgage Broker in Dubai
There are many advantages of using a mortgage broker in Dubai. They are as follows:
ACCESS TO A WIDE BASE OF LENDERS
A mortgage broker has access to a wider range of lenders than you might be able to find on your own. Moreover, they are familiar with the requirements of different lenders including their lending criteria, loan products and standards for underwriting.
When a borrower works with a mortgage broker, the broker gathers information about the borrower’s financial situation. It includes their credit history, income, and employment status.
Based on this information, the broker can identify lenders for borrowers according to their mortgage needs. This knowledge also helps in many crucial processes such as getting a mortgage pre-approval in Dubai.
EXPERTISE IN THE MARKET
Next on the list of advantages of using a mortgage broker in Dubai is their expertise in the mortgage market. They help you understand the terms and conditions of each mortgage product and guide you choose the one that suits your needs. Besides, solid information on the expected fees helps to manage the budget effectively- an essential step of a first-time home-buying checklist.
SAVING OF TIME AND EFFORTS
A mortgage broker not only provides a large network of potential lenders but also saves the client’s time and effort. You can rely on a mortgage broker to do most of the legwork and negotiation on your behalf.
Additionally, such a broker helps in securing favourable mortgage terms such as lower interest rates or reduced fees. They also coordinate with other real estate professionals such as lawyers and real estate agents. This assists in a smooth home-buying process.
EXPERT ADVICE
The mortgage process can be complex and overwhelming for many. A mortgage broker helps clients understand each step of the process and helps improve their creditworthiness. Moreover, from structuring a mortgage to finding repayment options, a mortgage broker offers personalised solutions.
Additionally, the mortgage market of a city like Dubai is constantly evolving, with new products and trends emerging all the time. A mortgage broker stays up-to-date with these trends and ensures that clients have access to the latest and most competitive mortgage packages.
These were the pros of using a mortgage broker in Dubai. Let us now go through some of the other aspects that one should consider when hiring a mortgage broker.
Cons of Using a Mortgage Broker in Dubai
Following are some of the disadvantages of using a mortgage broker in Dubai:
LIMITED LOAN CONTROL
Although a mortgage broker acts as a bridge between the borrower and lender, they limit loan control. Whilst a broker handles most of the mortgage work, it hinders the client’s say in the final decision. However, a mortgage broker finds the best home loans in Dubai and negotiates the terms on your behalf.
THE BROKER FEES
Another disadvantage to be considered when opting for a mortgage broker is that most of them work on a commission basis. When you deal with a property broker in Dubai, they charge a fee for their services, which can be a percentage of the loan amount or a flat fee. This adds to the overall cost of getting a mortgage. The fees differ from one broker to another.
UNCERTAINTY ABOUT THE FINAL OUTCOME
At times, a broker might not be able to find a deal that best suits your preferences. Also, uncertainty on the final estimate causes the client to pay over the dedicated amount, disrupting the budget.
All in all, mortgage brokers have access to different lenders through their professional networks and industry knowledge. They strive for high-quality customer service and ease the mortgage processes for their clients.
If you are interested to buy property in Dubai, you can choose from:
Stay tuned to dubizzle’s property blog for more insights, suggestions and advice on the real estate markets.
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