Buyer's guide
Buying with bank financing — the process, and the risks to get in writing
Six steps from pre-approval to transfer, and the three points where financed buyers stumble: the bank's valuation gap, the deposit's fate, and timelines. Specifics differ between banks — this guide gives you the right questions, not promises.
The six steps
- 1Pre-approval from your bank: know your approximate ceiling before searching — an estimate, not a guarantee.
- 2Choose the property and agree the price through Damj: documented offers, one published price.
- 3The bank's accredited valuation: the bank finances a share of its OWN appraisal — this is where a valuation gap can appear.
- 4Final approval and the financing letter: after reviewing your obligations and debt-burden ratio — timelines differ between banks.
- 5The deposit under a documented tripartite agreement: paid to the seller directly, with its fate in every case (especially financing collapse) written down before any payment.
- 6Transfer and disbursement: the bank pays the seller through the official process and title moves to you. Damj's buyer-paid commission (2.5% + VAT) falls due only after transfer.
The three biggest pitfalls
- The valuation gap: the bank lends against its own appraisal, not the agreed price — plan for a gap before it surprises you.
- A deposit with no written clause:pay nothing until the tripartite agreement states in writing the deposit's fate if financing is refused or delayed.
- Time works against the deal: bank committees and support authorities take long — a realistic schedule shared with both sides from day one protects the deal.
Damj's role as your agent
Damj is the buyer's agent: coordinating you, the seller, and the bank, documenting every stage, and protecting the deal with realistic scheduling. Damj never receives any part of the price or deposit — the price moves through the government channel and the deposit goes to the seller directly.
Financed buyers' questions
Does the bank's pre-approval guarantee my financing?
No. Pre-approval is an initial estimate; the final decision comes after the bank's property valuation and a review of your obligations and debt-burden ratio. Treat it as a seriousness signal, not a guarantee — and pay no deposit before its fate on refusal is written down.
What if the bank values the property below the agreed price?
The bank finances a share of ITS OWN appraised value — not the agreed price. The difference is a cash gap you carry unless the price is renegotiated. Ask what the valuation was based on and weigh the options before committing: renegotiate, raise your down payment, or withdraw per the deposit agreement's terms.
Who do I pay the deposit to as a financed buyer?
The deposit goes to the seller directly under a documented tripartite agreement — Damj never holds it. What matters most in your case: the agreement must state in writing, before any payment, exactly what happens to the deposit if financing stalls or is refused.
How long does a financed purchase take?
Longer than cash: an accredited valuation, bank committees, and sometimes a housing-support authority — timelines differ between banks. The longer clock tests the seller's patience and the exclusivity term, so Damj sets expectations with both sides from day one and documents each stage.
How does the money reach the seller — does it pass through Damj?
The bank disburses the financed amount to the seller through the official title-transfer process, and any cash portion from you goes through the same government channel. Damj never receives any part of the price or the deposit — anyone requesting a transfer in Damj's name is a fraudster.
I have government housing support — does it change the process?
The support authority's track (its conditions and timelines) stacks on top of the bank's, extending the schedule somewhat. Tell Damj upfront so support timelines are built into the deal schedule and the deposit agreement.