Posted by: islamicfinancingnews | July 6, 2012

Talk to an Islamic finance lender about ways to keep within your budget

When you are considering Islamic loans to fund your first home purchase, you need to be aware of more than just the rates and terms that are included in the various Islamic mortgages that are presented to you. You also need to set a budget that you can afford and one that includes other expenses as well as the financial responsibility of a mortgage payment.

You’ll need to list your assets in addition to other required information in order to be pre-approved by a lender for any type of mortgage. Once you have been pre-approved, you can start searching for a home in your price range, but keep in mind that you don’t need to borrow the full amount you qualify for. Remember that homeowners are responsible for other expenses like property taxes and utility costs in addition to repaying the mortgage lender. While these extra costs won’t be included in the amount of your loan, they will make up part of the monthly expenses you owe. By making a larger down payment on your home, you can reduce your monthly mortgage payments.

Talk to your Islamic finance lender about determining your debt-to-income ratio as a way to estimate a monthly budget you can work with.

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