Posted by: islamicfinancingnews | April 2, 2012

Islamic mortgages need documentation too

Islamic finance  is different than more traditional mortgages in some ways and the same in others. While it does away with riba there is documentation that’s needed for these Islamic mortgages that’s quite often the same as with a Western mortgage.

For example:

  • any financial institution that you’re dealing with will want to know how about your employment history. The idea behind the loan might not be to make interest on the money that’s being lent, but you still need to prove to any financial institution that you’re more than capable of paying the money back.
  • they will want the property properly appraised as well. Anyone in  the financial game will want to be sure they’re not taking any unnecessary risks and so it should come as no surprise they will want to know what the property is worth.

Getting the right product when it comes to Islamic mortgages isn’t that much different overall from a more traditional mortgage and you still need to shop around to find the financial institution that will give you the best rates and overall package.

These Islamic loans represent the same path to satisfied home ownership that every other type of mortgage does.

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