Posted by: islamicfinancingnews | April 29, 2013

Islamic loans require proper documentation

islam21 Islamic loans will help you to steer clear from Riba and stay Sharia compliant. Getting a company that understands Islamic mortgages is the right first step for the practicing Muslim but, as you might imagine, there’s more to the overall package than just Sharia compliance. You need to be sure that you’ve got the proper documentation as well as the funds to start off on any real estate adventure.

Regardless of whether you’re looking for a loan from a western style or Islamic bank, they’ll want to be sure you’re not an undue risk. So you’ll need to prove to them you’ve had both a job and a steady residence for some length of time, in addition to having established reasonable credit. Although there’s generally some flexibility here, you’ll need to prove that you have sufficient funds to satisfy the on-account payment or more traditional down payment as well, usually in the ten to twenty percent range, so the transaction can move forward.

There’s more to getting Islamic loans than first meets the eye. Because you could very well be dealing with a western style institution, it’s a good idea to understand the more traditional requirements.

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