Buying your first home in the UAE? Exciting! But before you dive in, let’s talk about the common mistakes that can cost you time, money, and stress. Here’s what to avoid so you can buy your dream home with confidence.
1. Not Getting Pre-Approved First
Why It’s a Mistake: Without pre-approval, you don’t really know how much you can borrow. This means you might fall in love with a home that’s out of budget—or worse, lose a great deal to a buyer who’s already pre-approved.
Fix It: Get a mortgage pre-approval first. In most cases it takes just 24-48 hours and gives you a clear budget.
2. Underestimating the Hidden Costs
Why It’s a Mistake: It’s not just about the down payment! Buyers often forget about fees like Dubai Land Department charges (4%), real estate commissions (2%), and mortgage processing fees (1%).
Fix It: Budget for these extras so you’re not caught off guard.
3. Choosing the Wrong Mortgage Type
Why It’s a Mistake: There’s a big difference between fixed-rate and variable-rate mortgages, as well as conventional vs. Islamic home financing.
Fix It: Compare options, speak to a mortgage expert, and choose what works best for your financial situation.
4. Not Considering Loan Repayment Terms
Why It’s a Mistake: The longer your loan term, the lower your monthly payments—but you also pay more interest over time.
Fix It: Find a balance between affordable monthly payments and a reasonable total loan cost.
5. Rushing Into a Purchase
Why It’s a Mistake: The UAE property market moves fast, but that doesn’t mean you should rush into a deal without doing your research.
Fix It: Work with trusted real estate agents and mortgage advisors to make an informed decision.
Ready to buy smart? Let us help! Get a free mortgage consultation today.
