If you are a first-time buyer, buying a home may be an exciting experience. If you are looking for a property in Dubai, the competition in the real estate market is intense.
However, the important stages outlined in the home buying checklist might assist you in selecting your dream property. Let’s walk through the processes of buying a home.
STEPS TO BUYING A HOUSE
To ensure that your property acquisition goes as smoothly as possible, familiarize yourself with the process by using our home buying checklist.
1. Set your budget – The most important step in the initial home buying checklist is to set your budget.
2. Get a mortgage pre-approval – If you already have a mortgage pre-approval, your purchase will be much easier. However, if you do not already have it, have it arranged from any bank as soon as possible.
3. Find a real estate agent – Once you’ve determined your budget, look for an RERA-certified real estate agent. Hiring a real estate agent can simplify your purchases.
A registered broker may represent you in negotiations and assist you in choosing the best match for you.
4. Make an offer – Once you’ve decided on a property, make an offer. If you make your offer immediately, you might have an advantage in the property discussion.
5. Pay the deposit – After both parties have agreed on the price, a legal agreement, MOU (Memorandum of Understanding), also known as Form F under RERA, will be executed. The MOU details every part of the agreement, including any rent or service payments received, as well as the time duration before transfer.
At this point, you must produce a current-dated cheque made payable to the the seller. The Cheque will represent a 10% deposit on the property’s value in the name of the seller. For the commission, a PDC (Post Dated Cheque) will be paid payable to the broker’s company.
6. Hire a Conveyancer – A licensed conveyancer transfers legal rights or property from the seller to the buyer.
7. Obtain the NOC – The property seller must obtain a NOC from the property developer confirming that the property is free of any outstanding dues.
8. Property Transfer – Once a property has been purchased, it may be simply transferred from one owner to another at the DLD (Dubai Land Department). A fresh title deed is drawn at the DLD. Remember to include the DLD transfer fee, which is 4% of the property value, as well as the registration fees.
Once the transfer is completed, DLD registers the transaction and issues the title deed to the new owner.
You now own your new house because the title deed is in your name. You must also register all utilities under your credentials.
Let’s quickly go through a basic but instructive checklist of everything to look for when buying a property.
CHECKLIST FOR BUYING A HOME
The stress of house seeking may be considerably lessened by using this checklist before buying a home.
1. RESEARCH THE MARKET
Do your research and maintain a variety of alternatives on hand at all times. Never buy before conducting your homework, and resist the impulse to buy the first home you see.
2. SAVE MORE THAN YOU SPEND
Make sure you have money set aside for any unexpected expenses. You can pay a larger deposit if you save up. As a result, your monthly payments may be reduced. One of the most usual home-buying blunders is underestimating the extra costs.
3. STAY WITHIN YOUR BUDGET
Once you’ve established a rent budget, try not to exceed it. Also, try not to agree to spending more than 30% of your monthly salary for housing, according to the 30% rent rule of thumb.
4. OBTAIN PRE-APPROVAL FOR A LOAN
You may expedite your purchase while keeping inside your budget by obtaining a loan pre-approval. To offer oneself greater negotiation power, you should better plan your cash ahead of time.
You should also be informed of the advantages and disadvantages before making a cash or mortgage buy. Make your home acquisitions with a well-planned approach and the assistance of a real estate professional.
5. BE AWARE OF THE FUTURE
Consider what things you will need in the future while buying your first home. Look for surrounding facilities such as respectable hospitals, reputable schools, stores, and so on.
6. CONTINUE TO NEGOTIATE
For fear of losing the transaction, first-time home buyers do not negotiate more. You must negotiate the conditions of the home purchase contract until you are pleased.
7. GO TO OPEN HOUSES
Buyers should attend open houses and every property on their wish list, according to our home buying checklist. Make certain that you are completely prepared to attend the open house.
Keep a list of questions about the property before each visit, take photographs, and make notes to assist you narrow down your preferred property.
8. WORK WITH A PROFESSIONAL REAL ESTATE AGENT
You may avoid typical real estate investment blunders by choosing a seasoned real estate agent. A real estate agent may greatly simplify the home buying process.
9. AVOID HAVING AN EFFECT ON YOUR CREDIT SCORE
Before providing you the loan amount, every mortgage lender, generally a bank, checks your credit score. As a result, if you intend to buy a home, avoid any conduct that may have an impact on your credit score.
Stop transferring jobs, bank accounts, and making new purchases to prevent damaging your credit score.
10. READ YOUR CONTRACT.
Even if you have a team of real estate experts on your side, make sure you read the whole contract thoroughly. If you disagree with anything, ask questions and address it without hesitation.
That ends our home buying checklist. Although it may be tempting to settle for the first property that meets your budget and other requirements, it is best to seek for alternative possibilities.
You may go through these properties for sale in the UAE to locate your dream home on your house-hunting adventure.
