Final Offer Letter (FOL)
The bank's formal binding mortgage offer specifying the exact loan amount, rate, tenure, and all terms and conditions.
What is Final Offer Letter (FOL)?
The Final Offer Letter (FOL) is the bank's formal, binding commitment to lend you a specific amount under specific terms. It comes after pre-approval, property valuation, and full document verification. The FOL details the exact loan amount, interest rate (fixed and variable components), tenure, monthly payment, early settlement terms, insurance requirements, and all fees. Once you sign the FOL, both you and the bank are committed to the transaction.
Final Offer Letter (FOL) in the UAE
In the UAE mortgage process, the FOL is a critical milestone. It typically comes after: application submission, pre-approval, property valuation, and final underwriting. The FOL is usually valid for 60 days. After signing, the bank arranges mortgage registration with the relevant Land Department, and disbursement follows. Always review the FOL carefully — Mortigo helps you understand every clause.
Can I negotiate the FOL terms?
Some terms are negotiable, particularly the interest rate margin. However, regulatory requirements (LTV, DBR) cannot be changed. Mortigo negotiates with banks on your behalf before the FOL is issued.
What happens after I sign the FOL?
After signing, the bank registers the mortgage with the Land Department, arranges property insurance, and then disburses the funds (usually directly to the seller or developer).