Posted by: islamicfinancingnews | July 7, 2012

Latest market developments influence conventional and Islamic mortgages

When you are interested in applying for Islamic mortgages that comply with Sharia Law, you should familiarize yourself with the latest developments regarding conventional mortgages as well.

Recent reports indicate the sluggish housing market in the U.S. has been energized by lower mortgage rates resulting in improved sales for both new and previously owned homes. Rates for fixed long-term mortgages that include both 15-year and 30-year mortgage loans have fallen to record lows. Still, unemployment levels continue to make it difficult for many potential homebuyers to qualify for loans or save for a satisfactory down payment.

Any bank or financial institution you plan to deal with will require some background information before they decide to loan you money or pre-approve you for a mortgage. You must be prepared to disclose and verify financial information like your annual salary or yearly wages, and employment information including earnings for the past two years in the case of a self-employed individual. Your credit score will also be checked, so it’s a good idea to continue making regular timely bill payments during the pre-approval process.

The news is also good for current homeowners who can take advantage of lower rates to refinance and use the savings for renovations or other home improvements. Talk to your lender about the different Islamic finance products that are available when you’re shopping for a mortgage to purchase a new home or to refinance your existing property.

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