Pre-approval

Pre-approval is the first formal stage of a UAE mortgage. The bank reviews your income, existing debts, credit history and documents, and issues a letter stating the maximum loan and the terms it is prepared to offer. It is the UAE equivalent of a British agreement in principle, but it involves a fuller document check.

Expect to provide your passport, proof of address, bank statements for several months, payslips and an employer's letter if employed, or accounts and tax returns if self-employed. Non-residents are often asked for a credit report from their home country. Some banks charge a fee. The letter is typically valid for 60 to 90 days.

It is conditional. The final offer depends on the bank's valuation of the property you choose, on the property and developer being acceptable to the lender, and on nothing in your circumstances changing. The amount is governed by the LTV caps and by the bank's affordability test.

The practical rule is to obtain pre-approval before signing Form F on a resale, because your 10% deposit is at risk if finance falls through. Make the contract conditional on final approval where the seller will accept it.

Pre-approval relates to you, not the home. For off-plan, where the loan is normally drawn at handover years later, an early pre-approval will have expired; begin the process several months before completion instead.