Posted by: islamicfinancingnews | October 29, 2013

Islamic loans and mortgage requirements

You might be surprised when you first find out Islamic loans aren’t all that much different then their Western counterparts when it comes to the requirements to get one. Remember that Islamic mortgages are still a financial transaction and that means the lending institution needs to be sure they are islam21going to get repaid. That said, here’s a few things you need to look at.

  • The down payment. Generally the money here will come from you, but there are lending institutions that have different practices. Make sure to get a good idea of what’s allowed and what isn’t when it comes to the down payment before you start putting the funds together. This is the first step along with preapproval so it’s important to be sure to understand the requirements thoroughly.
  • Closing costs. Some people are surprised when they find out they need to pay for this part of Islamic mortgages, but these are a universal aspect of getting a mortgage. They include things like lawyers costs and land transfer taxes where applicable.

Getting involved in real estate is a good practice and still one of the safest investments you can make, but you need to understand the big picture and the requirements that include those encompassing Islamic mortgages.


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