Most of the people are outsiders in UAE and some of them work in the reputed organization while some doing odd jobs. But the point is everyone wants a settlement in this region having his/her own home. This desire isn’t too much but you have to work smartly to make this dream come true. The best option is a home loan for expatriates through Dubai banks. Yes, it’s possible to have your own home but the only way is to work with smart steps.
For all expatriates in UAE, we have managed some of the important things to know before going to apply for a home loan. If we have a look at the highlights, these are the following:
- What is most important is your credit history. We all have an account in a bank in UAE so try to maintain a good credit history and score by paying your all dues on time. Why it is important? It’s not for loan only but you can get many other offers at a reasonable interest rate holding a good credit score.
- There are three types of lenders – conventional and Islamic banks, private firms or individuals provide some loan on a fixed interest rate. But the point is which option is most suitable. For that, you need to compare lenders for interest rates and other features but we recommend you to approach a bank in Dubai for loan offers due to secured systems. These are highly professional in providing some unique and excellent offers according to the requirements of customers.
- The third most important point is the overall structure of a package. Keep one thing in your mind that the services and costs vary from lender to lender. It must be noted with great care to consider all the costs, fees, and charges on your loan so that to manage at the time of repayment.
- Suppose you are doing a job in a reputed company even then you need to check your credit and debit at least for a year. It may help you to assess your finances and evaluate your ability to repay it with a fixed time period.
- This is a modern era and you have to work according to the latest systems. It will help you to get important information and the latest updates. So it’s a suggestion for everyone to be updated with all pertinent information before applying for a home loan. It not only improves the chances of your loan but also you will get some better opportunities. This thing will also increase your chances of loan to get approved and can also help you secure a loan at a lower rate of interest.
How to maintain a good credit history?
You are looking for banking services and particularly loan option, you must have a clear idea about your credit score. My friend this is really important from taking a loan till repayment of a loan. While applying for a home loan, there are many points as highlighted above to be considered in your mind so that to complete your package with a perfect ending. For example, it is a suggestion for all of you to take into consideration factors like your credit score, interest rate, and other fees and charges before making any final decision.
You can check the eligibility criteria of a lender and after examining these criteria, you can make sure that what works best for you. You can save a lot of effort and money as well and this also prevents you from making mistakes such as selecting the wrong lender. Most of the people don’t have any idea about opting for the lender and what should be the repayment method. So this care saves you to choose an inconvenient tenor or borrowing more than you need.
Moving back towards the credit score, it is actually a representation of your credibility of we can say that your creditworthiness. The evaluation is based on your history of credit repayment and time management. This score ranges from 300-900 and a score above 750 is considered ideal which can provide you with maximum benefits. While on the other hand, a lower credit score signifies bad debt management. In this case, you may don’t get some best packages and may result in your loan application being rejected. Well, even if someone agrees to pay you a loan, it must be with a higher interest rate being applied on your loan.
The only thing you can do is to maintain your credit. It is very easy to manage this thing but due to time mismanagement, most of the investors get into bad credit history. You can maintain a good credit score by simply paying your dues on time, so always keep your deadlines into the top of your head all the time.
Choose the automatic process:
Maintaining a credit score for a home loan is very important for all of you in UAE, whether you are a national or a resident. The point is we are always busy with our routine based tasks that we forgot to make our payment within a fixed time period. Whatever the excuses are, for a non resident home loan your credit score must be above average. Well, there is one way to fix this problem and it’s a good way of ensuring by automating your payments. You can get some digital or internet banking services which will automatically make your payments.
There is another way which is pretty important and that is you can get rid of different credit cards. By reducing the number of credit cards you are using, the load will automatically be reduced. This is the best way to ensuring that you continue to use your old credit card with a good credit history. Most of the lenders provide you some important tips like to bind yourself with using your card. If you want to get a good credit history, it is very important that you never exceed more than 30% of credit utilization.