Posted by: islamicfinancingnews | October 20, 2013

Islamic mortgages and fixed or variable rates

islam21Ask any Islamic finance expert and they’ll tell you there are some marked similarities between Islamic loans and their more traditional Western counterparts. Even when you’re considering taking out an Islamic version so you can stay Sharia compliant, you need to be sure to get the proper documentation together so the lending institution doesn’t look at you as an unusually big risk. Following are a few items of information you’ll need to present.

  1. Work Record. It stands to reason the bank or lending institution you’re dealing with will want to have assurances they will get their money back. That’s where a good work record comes in handy. The longer you’ve been in a position, the better. Remember, the bank or other lender is looking at this aspect so they can get a picture of the way you generally handle your responsibilities. Work is a large part of that.
  2. Credit history. Taking a look at how you handle credit is another strong indicator. Keep in mind, even if your credit history isn’t that strong now, you can take steps to rebuild it by talking with financial institutions.

Islamic mortgages aren’t that much different from traditional loans we are generally more familiar with.

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