Posted by: islamicfinancingnews | July 13, 2012

Obtaining Islamic loans free of Riba starts with being pre-qualified

With the popularity of Islamic finance growing in different parts of the world, many North American Muslims are interested in finding ways to secure Islamic loans free of Riba. Therefore, it’s useful to understand the basics of the Ijara or Lease-to-Own process that starts with being pre-qualified by the lender.

A homebuyer’s capacity and willingness to repay the lease are the primary factors a lender takes into consideration when deciding to approve an individual for the different Ijara plans and rates that they qualify for.

A lender can determine the amount you can afford to pay for a home based on financial information you provide which must include details of your income and debts. Documentation such as paystubs from your current employer or tax returns will verify your total income. A stable employment record for an individual who has worked with the same company or in the same line of work for a few years is regarded favourably by a lender. The intended use of the property as a residential premises or rental property will also be considered as a pre-qualifying element in an Ijara plan. Similarly, a lender will examine your credit report to determine your history with respect to other financial responsibilities.

Talk to your lender about ways you can qualify for one or more of the many Islamic finance products available.

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